BIPA Annual Report 2022-2023

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GE A R I N G

TOW

ANNUAL

PL IA

SI N

REPORT

E SS

L AN

D S CA P

Business and Intellectual Property Authority 1 ANNUAL REPORT 2022/2023

ABOUT THE THEME:

Gearing Towards a Compliant Business Landscape

In the dynamic realm of modern business, embracing a

compliant business landscape and economy is essential As regulations and around the clock to reform the current corporate laws,

which inadvertently will improve the overall compliance

for sustainable growth. This year’s theme delves into the

strategies and tools that aim to empower businesses

legislative instruments landscape for business conduct in Namibia.

and economies alike to navigate the intricacies of

compliance that can lead to opportunities for enhanced

become more stringent, Businesses today find themselves at the crossroads

of rapid technological advancement and increasingly

economic development. the need for businesses vigilant regulatory oversight. This theme further

envisions to showcase that there is an array of strategies

As a central regulatory body, BIPA serves as a linchpin in to navigate complex and tactics that businesses can employ to not only meet

ensuring that entities adhere to transparency standards

and fulfil their annual obligations. BIPA’s role in beneficial compliance frameworks the rigorous demands of compliance but also to leverage

these demands and become catalysts for innovation

ownership compliance is pivotal. It serves as the main

conduit through which legal persons are required to is proving to be and resilience, with BIPA as a trusted partner.

beneficial owners.

a pivotal determinant Furthermore, the theme highlights the connection

between compliance and ethical conduct. It explores

This transparency not only safeguards against financial

of their success. how upholding compliance standards encourages a

transparent and honest reputation amongst registered

crimes such as money laundering, terrorism financing The theme of “Gearing Towards a Compliant Business and regulated business entities. The theme aims to

and proliferation financing, but also builds trust among Landscape” delves into the multifaceted world of further illuminate the path that prospective business

stakeholders, investors, and the public at large. In the regulatory adherence and ethical responsibility that the entities and entrepreneurs must walk when they

ever-evolving global business landscape, the imperative business landscape must embrace to thrive. In additional make compliance the cornerstone of their operational

of compliance has taken centre stage like never before, to heightened compliance, BIPA together with the philosophy.

not only in Namibia, but globally. Ministry of Industrialisation and Trade has been working

Business and Intellectual Property Authority 2 ANNUAL REPORT 2022/2023

1 LIST OF ACRONYMS

AND ABBREVIATIONS 04 2 THE 2023 FINANCIAL YEAR

AT A GLANCE 05

CONTENTS

3 ABOUT BIPA 06 4 STATEMENT BY THE

BOARD CHAIRPERSON 12

OUR CORPORATE

5 GOVERNANCE

ARCHITECTURE

15 6 CHIEF EXECUTIVE

OFFICER’S OVERVIEW 22

7 EXECUTIVE MANAGEMENT 25 8 OFFICE OF THE

CHIEF EXECUTIVE OFFICER 28

AUDIT, RISK AND

9 INVESTIGATIONS

MANAGEMENT

30 10 LEGAL & COMPLIANCE 35

11 BUSINESS STRATEGY 38 12 OPERATIONS 41

13 ANNUAL FINANCIAL

STATEMENTS

2 ANNUAL REPORT 2022/2023

Business and Intellectual Property Authority ANNUAL REPORT 2022/2023

1. LIST OF ACRONYMS AND ABBREVIATIONS

4IR Fourth Industrial Revolution IBRS Integrated Business Registration System

AML Anti-Money Laundering ICSF Integrated Client Service Facility

APF Anti-Proliferation Financing ICRS Integrated Company Registration System

ARIPO African Regional Intellectual Property Organisation IP Intellectual Property

ARAMN Association of Records and Archive Management in Namibia IPR Intellectual Property Rights

ATF Anti-Terrorism Financing ICAN Institute of Chartered Accountants of Namibia

BIPA Business and Intellectual Property Authority ICT Information and Communication Technologies

BRS Business Registration Services MIT Ministry of Industrialisation and Trade

CC Close Corporation MoU Memorandum of Understanding

CEO Chief Executive Officer N$ Namibian Dollar

ERP Enterprise Resource Planning NAMRA Namibia Revenue Agency

ESAAMLG Eastern and Southern Africa Anti-Money Laundering Group NUST Namibia University of Science and Technology

FATF Financial Action Task Force PCT Patent Cooperation Treaty

FIA Financial Intelligence Act SME Small and Medium Enterprise

FRAC Finance, Risk and Audit Committee MSME Micro, Small and Medium Enterprise

FY Financial Year PE Public Enterprise

BO Beneficial Ownership SPPC Strategic Planning and Projects Committee

FIC Financial Intelligence Centre TIN Tax Identification Number

GLEC Governance, Legal and Ethics Committee WTO World Trade Organisation

HCM Human Capital Management WIPO World Intellectual Property Organisation

HRRC Human Resources and Remuneration Committee

Business and Intellectual Property Authority 4 ANNUAL REPORT 2022/2023

2 THE 2023 FINANCIAL YEAR AT A GLANCE

To date,

Up to

114,845 68% 73%

12,577 intellectual

property rights of BIPA workforce employee

new businesses have been is female satisfaction

registered registered in

Namibia

88% 98% N$575,541

stakeholder critical systems budgeted for

satisfaction availability employee

capacitation

Business and Intellectual Property Authority 5 ANNUAL REPORT 2022/2023

3 ABOUT BIPA

“Compliance is the compass that guides businesses

through the intricacies of the modern economy”

Business and Intellectual Property Authority 6 ANNUAL REPORT 2022/2023

Business and Intellectual Property Authority 7 ANNUAL REPORT 2022/2023

ABOUT BIPA

3.1. Purpose

BIPA is mandated to regulate and administer the registration of business

and industrial property in terms of applicable legislation with the objective

of facilitating economic growth and development, promoting investment

and creating employment through enhancing the efficient protection of

business and intellectual property in Namibia. Vision

Simultaneously, BIPA is mandated to promote the conduct and use

of business and intellectual property in Namibia; facilitate, streamline, “To be the catalyst of

simplify and harmonise the business and industrial property procedures, economic growth for a

registrations, filings and searches to expedite economic growth and transformed business

development; and to enhance the efficient exchange and distribution

of information. Protection of intellectual property rights encourages

landscape and an

innovative economies, enriches individuals and companies, preserves innovative nation.”

wealth and saves lives.

BIPA’s dual mandate further tasks the Authority with the registration of

Companies, Close Corporations and Defensive Names. This function is not

only a vital enabler of a stable and thriving economy, but also contributes

to government’s greater developmental goals of poverty eradication, the

alleviation of unemployment and bridging the inequality gap amongst

Namibians.

Against this background, the objectives of BIPA as outlined in

Section 2 of the Act are:

• To foster economic growth and development, and promote

investment and employment and the efficient protection and Mission

administration of business and intellectual property in Namibia;

• To consolidate the various offices and officials involved in the “We protect

registration and administration of business and intellectual property; intellectual assets

• To facilitate and promote the efficient and effective registration of

business and intellectual property and to keep and administer the

and make doing

required registers; business possible

• To promote the conduct and use of business and intellectual in Namibia.”

property in Namibia;

• To facilitate, streamline, simplify, harmonise and expedite business

and intellectual property procedures, registrations, filings and

searches; and

• To enhance the efficient exchange and distribution of information.

Business and Intellectual Property Authority 8 ANNUAL REPORT 2022/2023

3.2. Strategic Themes

BIPA’s 5-year business strategy consists of four (4) key themes to assist the

Authority to reach its goals through enhancing:

Financial Sustainability: BIPA aims to become a self-sustaining public

enterprise by improving its revenue generation.

Values

Stakeholder Confidence: BIPA is mandated to provide services to its

Values are important building

clients and collaborate with its stakeholders to deliver value to its clients

blocks to create a high

performance and innovative culture

for our people. This creates a

common and shared purpose and Internal Processes and Governance: To ensure that the organisation

encourages the active participation is able to meet the clients and stakeholders’ objectives, BIPA aims to

of each staff member to live our improve its internal processes and governance framework.

values through their behaviour and

decision making.

Operational Excellence: BIPA is focused on its core assets, which are

its people.

Our values are:

Accountability Service Excellence

Teamwork Empowerment

Integrity Innovation

Business and Intellectual Property Authority 9 ANNUAL REPORT 2022/2023

3.3 BIPA Organogram

ORGANISATIONAL STRUCTURE

REPUBLIC OF NAMIBIA

MINISTRY OF

INDUSTRIALISATION

AND TRADE

BOARD OF

DIRECTORS

CHIEF EXECUTIVE

OFFICER

STRATEGIC BUSINESS UNITS [AS PER MANDATE]

EXECUTIVE:

EXECUTIVE: EXECUTIVE: MARKETING,

EXECUTIVE: EXECUTIVE: EXECUTIVE: EXECUTIVE:

INFORMATION & LEGAL & COMPANY CORPORATE

HUMAN CAPITAL FINANCE & INTELLECTUAL BUSINESS

COMMUNICATION SECRETARY SERVICES COMMUNICATION

MANAGEMENT ADMINISTRATION PROPERTY REGISTRATIONS

TECHNOLOGY & CLIENT

SERVICES SERVICES

MANAGEMENT

SERVICES

Business and Intellectual Property Authority 10 ANNUAL REPORT 2022/2023

3.4 Legislative and other mandates

The BIPA Act, 2016 confers powers onto the Authority to administer legislation Therefore, it is important to note that in addition to its establishing legislation,

relating to business registration and intellectual property administration. Its mandate BIPA’s legislative universe is rather broad and the below highlights the laws under

encompasses companies, close corporations, trademarks, patents, industrial administration of BIPA:

designs, aspects of copyright legislation and enforcement of rules and regulations.

Legislation Mandate

Business and Intellectual Property Authority Act, 2016 Facilitate and promote the efficient and effective registration of business and industrial property

(Act No. 8 of 2016) in Namibia.

Companies Act, 2004 (Act No. 28 of 2004) disputes, educate and inform about all laws, non-binding opinions and circulars, policy and

legislative advice.

Close Corporation Act, 1988 (Act No. 26 of 1988)

corporations.

Industrial Property Act, 2012 (Act No. 1 of 2012)

accordance with the law and other international instruments.

(Act No. 6 of 1994)

Merchandise Marks Act, 1941 (Act No. 17 of 1941) as Amended To make provision concerning the marking of merchandise and coverings with which merchandise

is sold and the use of certain words, emblems in connection with business.

Business and Intellectual Property Authority 11 ANNUAL REPORT 2022/2023

4 STATEMENT BY THE

BOARD CHAIRPERSON

"Ethical conduct is the cornerstone of a transparent

and honest business reputation."

Business and Intellectual Property Authority 12 ANNUAL REPORT 2022/2023

Immanuel Tino !Hanabeb, Chairperson of the Board of Directors

Business and Intellectual Property Authority 13 ANNUAL REPORT 2022/2023

STATEMENT BY THE BOARD CHAIRPERSON

Dear Stakeholders,

It is with immense pride and profound optimism that I compliant with the essential laws such as the BIPA Act, The journey of BIPA towards being a driver of economic

extend these remarks to the annual report of the Business 2016, and the Public Enterprise Governance Act, 2019. prosperity and a beacon of good governance continues

and Intellectual Property Authority (BIPA) for the financial These governance principles are the bedrock upon which unabated. The achievements highlighted in this annual

year 2022/23. As the Chairperson of the Board, I am BIPA stands, safeguarding its integrity and trustworthiness. report are a testament to the dedication, expertise, and

privileged to bear witness to the remarkable journey of BIPA unwavering commitment of the entire BIPA family. We

in fulfilling its mandate as an economic driver, catalyst for shall not rest on our laurels, but rather, we will continue to

business excellence, and guardian of intellectual property innovate, improve, and serve the interests of Namibia, its

rights in Namibia. businesses, and its people with ever-greater determination.

Over the past year, BIPA has made significant strides

During the year under Looking ahead, we are in are in the process of reviewing

in enhancing the ease of doing business, fostering a

conducive business environment, and attracting foreign

review, the Board all business policies so that we are able to align them to

current trends. This is essential in equipping the business

investment into our beloved country. This journey towards

progress would not have been possible without the

displayed forward- landscape with laws that speak and conform to the realities

of our contemporary business environment.

dedication and hard work of the entire BIPA team, and I thinking by allocating a I extend my gratitude to our management team and staff,

extend my heartfelt gratitude to all our staff members who

have relentlessly pursued excellence. sufficient CAPEX budget stakeholders, partners, and the Namibian public for their

unwavering support, and I invite you all to join us on this

One of the notable achievements of this past year is the

commendable financial resilience demonstrated by BIPA,

for two strategic and remarkable journey as we unlock prosperity through

progress and resilience.

especially during the challenging times brought about transformative projects.

by the global COVID-19 pandemic. The prudent financial

management policies advised by the Board have not

only shielded BIPA from financial instability but have also

allowed us to thrive. For the 2022/23 Financial Year, BIPA

proudly recorded total revenue of N$91.8 million, marking First, the law reform project focusing on corporate

a substantial increase from the N$84.3 million recorded ………………………………………………………………………………………………

law reforms will contribute to the modernisation and

in the previous Financial Year. This accomplishment efficiency of our business regulatory framework. Second, Immanuel Tino !Hanabeb

underscores our commitment to financial stewardship the development of the Integrated Business Registration

while concurrently implementing the approved Revenue System (iBRS) represents a major leap forward in our Chairperson of the Board of Directors

Diversification Strategy—a testament to our foresight in pursuit of making Namibia an even more attractive

securing BIPA’s sustainability. destination for business. The iBRS will streamline the

registration process for businesses, significantly reduce

Improved governance frameworks within BIPA have been

turnaround times, enhance communication between BIPA

paramount in achieving these successes. The Board, in its

and its clients, and ultimately elevate the ease and conduct

oversight capacity, diligently approved the 2022/23 annual

of business in Namibia.

business and financial plan, ensuring that BIPA remains

Business and Intellectual Property Authority 14 ANNUAL REPORT 2022/2023

5 OUR CORPORATE

GOVERNANCE ARCHITECTURE

“BIPA serves as a trusted partner on the path to compliance

and ethical conduct in the business world.”

Business and Intellectual Property Authority 15 ANNUAL REPORT 2022/2023

OUR CORPORATE GOVERNANCE ARCHITECTURE

The Board of Directors:

Immanuel Tino !Hanabeb Sara Katiti Nangosora Ashley Tjipitua Justin Strauss

(Chairperson) (Deputy-Chairperson) (Board Member) (Board Member)

Mr. !Hanabeb holds a Master’s Degree in Ms. Katiti holds a Masters Degree in Ms. Tjipitua is an independent non- Mr. Strauss currently serves as the Strategic

Development Finance, as well as a Post Development Finance from the University of executive director in both public and private Executive: Information and Communication

Graduate Diploma in Leadership, both from Stellenbosch, a Bachelor of Technology and sector enterprises. She has more than 15 Technology at the Namibia Airports

the University of Stellenbosch in Cape Town. National Diploma respectively in Accounting years’ experience in regulation, business Company. He also held positions at the US

!Hanabeb has twenty-eight (28) years of and Finance from the Polytechnic of Namibia. management and commercial law. She honed Embassy in Windhoek and the Polytechnic

experience in the fields of accounting, finance, Ms. Katiti held various senior management her expertise in management, corporate of Namibia, now NUST. Mr. Strauss holds

business development, strategy, operations, positions in TransNamib, NamPower and legal advice, governance, compliance risk a Bachelor’s Degree of Science, Computer

project management, commerce, marketing City of Windhoek. In addition, Ms. Katiti’s management and competition law in over Science and Physics from the University of

and tourism. Previously he worked in the professional profile also includes directorships the 10 years that she served at management Namibia as well as various professional/

investments/asset management, consulting, on the Boards of a number of entities. Her and senior executive levels. She is the former technical certifications. He also completed the

logistics, road construction, seaports and expertise in corporate finance, governance Director: Enforcement, Exemptions & Cartels Leadership & Management Programme of the

maritime industries and currently serves as and project management makes her an at the Namibian Competition Commission, University of Stellenbosch.

the Chief Executive Officer of Erongo Regional invaluable member of the BIPA Board. where she led significant market intervention

Electricity Distributor (ErongoRed). in the telecommunications, financial services,

insurance, and energy sectors to name a few.

Business and Intellectual Property Authority 16 ANNUAL REPORT 2022/2023

The Board of Directors:

Julius Haikali Nancy Watyoka Hilka Alberto

(Board Member) (Board Member) (Board Member)

Mr. Haikali is a Human Resources Practitioner Ms. Watyoka is an Intellectual Property Ms. Alberto holds B Juris and LLB degrees

and Business Strategist by profession. He Expert on Geographical Indications and from the University of Namibia; and a LLM

possesses a Diploma in Public Administration Collective Trademarks. She holds a Master degree from the University of Liverpool. She

majored in Human Resources from NUST, in Intellectual Property from Africa University is currently employed as an EXCO member at

B-Tech in Public Administration majored in (AU), Zimbabwe. Nancy also holds an MDP the Financial Institutions Supervisory Authority

Human Resources from UNISA, Master of from University of Stellenbosch Business (NAMFISA) and served as a director at Sisa

Administration from University of Namibia School and BTech HRM degree from NUST, Namandje & Co Legal Practitioners. She

and Executive Development Programme from Namibia. A social entrepreneur at heart, she is boasts with extensive experience in the legal

Wits University. He has 23 years of experience a founding member of the Child Development and regulatory fields over the last 16 years.

in Human Resources and organisational Foundation in Namibia and serves as Trustee

development field, of which 13 years has been of Hope Village Foundation.

served at Senior and Executive level.

Business and Intellectual Property Authority 17 ANNUAL REPORT 2022/2023

5.2 Board Governance Structure The following powers are reserved for the Board: The Board delegates various other matters to the Board

Committees, as specified in the Terms of Reference of

The governance structure of the BIPA Board is established • Appointing the CEO; each committee.

firstly, in terms of sections 6 and 7 of the BIPA Act, 2016 • Approving the annual budget, annual business plan

The Board Chairperson

and secondly in terms of chapter 3 of the Public Enterprise and strategy;

Governance Act, 2019. The Board of Directors play a pivotal • Approving the annual procurement plan;

role in shaping the direction, decisions, and performance

of the organisation. It defines the framework within which

• Establishing sub-committees of the Board.

is responsible for setting

The Board has the power to make rules relating to:

the Board operates, its responsibilities, and how it interacts

with stakeholders. An effective governance structure is • The convening of, and procedures at meetings of the

the ethical tone of the

essential for ensuring transparency, accountability, and

the fulfilment of BIPA’s objectives. The Board operates

Board or a committee of the Board;

• The management of the affairs of BIPA and execution

Board and the Authority,

within the principles of best governance principles, as

outlined within the King Code III, NamCode and related

of its functions; providing overall

• Any matter which in terms of the BIPA Act is required

governance legislative provisions. or permitted to be prescribed by rules; leadership, overseeing the

• Generally, any matter which the Board considers

BIPA’s governance structure is similar to that of other Public

Enterprises in Namibia, in that the BIPA Board reports to

necessary to give effect to the objectives of BIPA. development of the Board

a line minister, in this case the Ministry of Industrialisation

and Trade (MIT). The Chief Executive Officer of BIPA in turn A structured succession plan for the Board and executive

Plan and presiding over

reports to the Board. leadership remains a crucial element to avoid disruptions Board meetings.

and ensure a smooth transition of power when necessary.

5.3 Powers of the Board of Directors

The role, function and powers of the Board, its members

5.4 Roles and responsibilities

and committees, and its relationship to other structures of It is the responsibility of the Board to guide the Authority

BIPA are determined by law, the Governance Framework, to achieve its strategic purpose by the powers conferred

corporate governance best practices, the enabling Act on it by the enabling Act, the Board Charter and other

and decisions and policies of the Board. The Board is Board decisions and policies. The Board delegates day- 5.5 Board Performance Assessment

responsible for the strategic direction and control of BIPA to-day strategic management decision making to the CEO,

and has the power to make any decision in respect of In terms of sections 11 and 12 of the Public Enterprise

who is supported by the Executive Management team.

the institution, in as far as its powers and fiduciary duties Governance Act, 2019 (Act No. 1 of 2019) the Board’s

The CEO is accountable to the Board.

extend. performance is assessed against Key Performance

Furthermore, the Board has the responsibility of: Indicators (KPIs) identified by the Minister. Therefore, on

The Board remains responsible for collectively promoting an annual basis, the Board signs a Governance Agreement

and safeguarding the long-term success of BIPA, as it • Approving policies, including those relating to and individual Performance Agreement with the Minister

manages the affairs in the best interest of the Authority, remuneration and investment; to ensure their performance are measurable and assessed

with due regard to the interests of its stakeholders; and • Remuneration of the CEO and Executive Management against set targets.

in compliance with all relevant Namibian legislation, members;

principles of sound corporate governance and corporate • Approval of BIPA’s organisational structure, including

policies. creating new positions and their grading;

• Approval of Annual Reports including Annual

Financial Statements.

Business and Intellectual Property Authority 18 ANNUAL REPORT 2022/2023

5.6 Board Structure

The BIPA Board consist of seven Board of Directors and their tenure runs for a period of and their term ends 30 September 2024, unless extended for a further period by the

three years. The Board was appointed on 01 October and 01 November 2021 respectively, Minister.

Directors Position Designation Appointment Date

Mr. Immanuel !Hanabeb Board Chairperson Non-executive 01 October 2021

Ms. Sara Katiti Deputy Board Chairperson Non-executive 01 November 2021

Mr. Justin Strauss Board Member Non-executive 01 October 2021

Ms. Hilka Alberto Board Member Non-executive 01 October 2021

Ms. Nangosora Tjipitua Board Member Non-executive 01 October 2021

Mr. Julius Haikali Board Member Non-executive 01 October 2021

Ms. Nancy Watyoka Board Member Non-executive 01 October 2021

5.6.1 Board Sub-Committees Structure

Board Sub-Committees Chairperson Substantive Members

Ms. Nancy Watyoka

Human Resource and Remuneration

Mr. Julius Haikali Ms. Hilka Alberto

Committee (HRRC)

Mr. Immanuel !Hanabeb

Mr. Justin Strauss

Finance, Risks, and Audit Committee Ms. Nancy Watyoka

Ms. Sara Katiti

(FRAC) Mr. Immanuel !Hanabeb

Mr. Justin Strauss

Governance, Legal, and Ethics Ms. Nangosora Tjipitua

Ms. Hilka Alberto

Committee (GLEC) Ms. Nancy Watyoka

Ms. Sara Katiti

Strategy, Projects, and Procurement Ms. Hilka Alberto

Mr. Justin Strauss

Committee (SPPC) Ms. Nangosora Tjipitua

Mr. Julius Haikali

Business and Intellectual Property Authority 19 ANNUAL REPORT 2022/2023

5.7 Board and Board Sub-Committee Meetings held for FY2022/23

5.7.1 HRRC:

Chaired by Mr. Julius Haikali. This committee is responsible for developing formal and to enable the institution to fulfil its mandate.

transparent policies and procedures on BIPA remuneration, and for determining the

remuneration packages of BIPA Management. The Committee upholds the principle that A total of 4 meetings were held. Q4 of the FY22/23 was held outside of the reporting

the financial reward offered should be market related to attract highly qualified employees financial year. No special meetings were held.

Total Meeting Dates Attended 09 June 22 29 Sep 22 09 Dec 22 27 Mar 23 No. of Meetings

Q4 21/22 Q1 22/23 Q2 22/23 Q3 22/23

Mr. Immanuel !Hanabeb X X X X 4

Ms. Sara Katiti X X X 3

Ms. Nancy Watyoka X X X X 4

Mr. Julius Haikali X X X X 4

Ms. Hilka Alberto X X X 3

Mr. Justin Strauss X X X X 4

Ms. Nangosora Tjipitua X X X 3

5.7.2 GLEC:

Chaired by Ms. Hilka Alberto. The Governance, Legal and Ethics Committee (GLEC) provides A total of 4 meetings were held. Q4 of the FY22/23 was held outside of the reporting

legal support to the Board. The primary role of the GLEC is to deliberate, consult, comment financial year. No special meetings were held.

and assist the Board regarding existing and pending legislation and other legal matters.

Total Meeting Dates Attended 12 May 22 18 Aug 22 17 Nov 22 20 Feb 22 No. of Meetings

Q4 21/22 Q1 22/23 Q2 22/23 Q3 22/23

Ms. Hilka Alberto X X X X 4

Ms. Nancy Watyoka X X X X 4

Ms. Nangosora Tjipitua X X X X 4

Business and Intellectual Property Authority 20 ANNUAL REPORT 2022/2023

5.7.3 SPPC:

Chaired by Mr. Justin Strauss. The Strategic Plan and Project Committee (SPPC) A total of 4 meetings were held. Q4 of the FY22/23 was held outside of the reporting

discusses, formulates, recommends and provides advice for strategic and operational financial year. No special meetings were held.

implementation of key objectives on all capital and operational projects.

13 May 22 17 Aug 22 18 Nov 22 24 Feb 22

Total Meeting Dates Attended No. of Meetings

Q4 21/22 Q1 22/23 Q2 22/23 Q3 22/23

Mr. Justin Strauss X X X 3

Ms. Hilka Alberto X X X X 4

Mr. Julius Haikali X X X X 4

Ms. Sara Katiti X X X X 4

Ms. Nangosora Tjipitua X X X 3

5.7.4 FRAC:

Chaired by Ms. Sara Katiti. The purpose of the Finance, Risk and Audit Committee (FRAC) is to procedures, FRAC is given the necessary resources to carry out its responsibilities,

oversee responsibilities relating to financial planning, audit processes, financial reporting, including the authorisation to engage independent counsel and other advisors. A total of

the system of corporate controls and risk management, and to make recommendations 4 meetings were held. Q4 of the FY22/23 was held outside of the reporting financial year.

to the Board for approval when appropriate. In the process of overseeing BIPA’s audit One special meeting was held. In total FRAC held 5 meetings for the FY22/23.

Total Meeting Dates Attended 13 May 22 18 Aug 22 18 Nov 22 17 Jan 23 24 Feb 23 No. of Meetings

Q4 21/22 Q1 22/23 Q2 22/23 Q3 22/23 Q3 22/23

Ms. Sara Katiti X X X X X 5

Ms. Nancy Watyoka X X X X X 5

Mr. Julius Haikali X X X X X 5

Mr. Immanuel! Hanabeb X X X X X 5

Mr. Justin Strauss X X X X 4

Business and Intellectual Property Authority 21 ANNUAL REPORT 2022/2023

6 CHIEF EXECUTIVE

OFFICER’S OVERVIEW

"Prospective businesses must make compliance

the foundation of their operational philosophy for

a successful journey."

Business and Intellectual Property Authority 22 ANNUAL REPORT 2022/2023

Vivienne Katjiuongua, Chief Executive Officer

Business and Intellectual Property Authority 23 ANNUAL REPORT 2022/2023

CHIEF EXECUTIVE OFFICER’S OVERVIEW

Dear Stakeholders,

As we step into the new year, it is essential to pause and reflect fight against financial crime. BIPA anticipates completion of This not only demonstrates the trust our clients have in our

on the milestones achieved during the year 2022/2023 at the BO register within the next financial year. services but also reflects the growing entrepreneurial and

the Business and Intellectual Property Authority (BIPA). innovative spirit in Namibia.

Our collaboration with the Ministry of Industrialisation and

This year has been a time of transformation, dedication,

Trade (MIT) has been instrumental in reforming Namibia’s As we embrace the future, let us remember that our work

and resilience, as we have continued our unwavering

Corporate Law. This ambitious project aimed to modernize, at BIPA goes beyond compliance and registration; it is

commitment to serving our nation and its people.

simplify, and streamline the Companies and Close about fostering an environment that nurtures innovation,

Corporations Acts, creating a comprehensive and unified creativity, and economic growth. With your unwavering

One of the most significant aspects Corporate Law. This reform is not just about regulatory support, we will continue to make strides in shaping

of our work this year has been our changes; it signifies our commitment to providing a a brighter future and building shared ownership for a

business-friendly environment that fosters economic prosperous Namibia.

relentless pursuit of improving growth and innovation.

In closing, I want to extend my gratitude to the dedicated

our compliance and legislative In the realm of intellectual property, we recognized the team at BIPA, our invaluable stakeholders, and our

framework. Namibia’s commitment to need for updating our legal framework to meet the esteemed clients. Together, we have achieved remarkable

evolving needs of creators and innovators. The Copyright progress in 2022/2023, and I have no doubt that our

international standards in combating and Neighboring Rights Protections Act, 1994, underwent collective efforts will continue to drive Namibia forward in

financial crimes led us to undergo a thorough review, and by the end of this financial year, the the years to come.

draft bill was submitted to the Attorney-General’s Office for

the Mutual Evaluation Report (MER) constitutional scrutiny. We anticipate finalising this critical

piece of legislation by the end of the 2023/24 financial

by the Financial Action Task Force year, reinforcing our commitment to safeguarding the

Thank you for your trust, dedication, and partnership.

(FATF), a global watchdog for Anti- intellectual property rights of our citizens and investors.

Money Laundering and related Furthermore, BIPA’s endeavors in strengthening our

brand position have been remarkable. We developed a

financial crimes. comprehensive brand strategy aimed at enhancing the ………………………………………………………………………………………………

trust relationship between BIPA and our internal and

Vivienne Katjiuongua

external stakeholders. Our commitment to transparency,

integrity, and excellence is at the heart of our brand Chief Executive Officer

strategy, ensuring that our stakeholders have confidence

It was an imperative task to ensure that our controls and

in our services and processes.

laws meet the highest standards in Anti-Money Laundering

(AML), Anti-Proliferation Financing (APF), and Anti-Terrorism Financially, I am delighted to report that BIPA has performed

Financing (ATF). Further, BIPA has been working around the exceptionally well. We have witnessed an increase in both

clock to address the MER requirements, one of which is to business and intellectual property registrations, leading to

ensure the effective implementation of a comprehensive improved revenue collection.

Beneficial Ownership (BO) Register, a cornerstone in the

Business and Intellectual Property Authority 24 ANNUAL REPORT 2022/2023

7 EXECUTIVE

MANAGEMENT

"Embracing compliance is not just a choice; it's a

fundamental step towards sustainable growth."

Business and Intellectual Property Authority 25 ANNUAL REPORT 2022/2023

Business and Intellectual Property Authority 26 ANNUAL REPORT 2022/2023

EXECUTIVE MANAGEMENT

7.1 Executive Management Team

The following members held Executive positions during the financial year 2022/2023

Vivienne Katjiuongua Jones Lubinda Ainna Kaundu Veneranda Shoombe

Chief Executive Officer (CEO) Executive: Finance and Executive: Intellectual Property Executive: Information and

Administration Communication Technology

as of March 2023 (Replaced Veiko Muronga

who resigned on 30 September 2022)

Frieda Mokotjomela Raphael Likando Ockert Jansen Chief Legal and Company Secretary

Executive: Corporate Services Executive: Business Registration Services Executive: Marketing, Corporate Vacant

as of 27 March 2023 Communication and Client Management

(Replaced Martin Mwaetako resigned Services

on 01 March 2023)

Business and Intellectual Property Authority 27 ANNUAL REPORT 2022/2023

8 OFFICE OF THE

CHIEF EXECUTIVE OFFICER

"Compliance is the compass that guides businesses

through the intricacies of the modern economy."

Business and Intellectual Property Authority 28 ANNUAL REPORT 2022/2023

OFFICE OF THE CHIEF EXECUTIVE OFFICER

The Chief Executive Officer (CEO) occupies a pivotal leadership position with the primary • Formulating Policies that contribute to the advancement of Namibia’s business

responsibility of supervising and directing the organisation’s activities, strategic trajectory, landscape

and the attainment of its mission and goals. Moreover, the CEO concurrently assumes the • Furnishing Reports to the Board

role of the Registrar of Business and Industrial Property as defined by the BIPA Act, 2016 • Serving as the face of BIPA to the public, media, and other stakeholders. Effective

(Act No.8 of 2016). This role entails the day-to-day management of an institution that and transparent communication cultivates credibility, transparency, and public

bolsters business efficiency and the safeguarding of intellectual property rights through confidence in BIPA’s endeavors.

registration in Namibia. Collaborating with the executive management team, the CEO

steers the realization of BIPA’s strategic vision, objectives, and undertakings.

Within BIPA, the CEO’s duties encompass a diverse spectrum: This role entails the day-to-day management of an

• Strategic Leadership institution that bolsters business efficiency and the

• Operational Management safeguarding of intellectual property rights through

• Engaging with Stakeholders

• Ensuring Regulatory Adherence registration in Namibia.

• Supervising the administration of Intellectual Property services and the fostering

of innovation

Business and Intellectual Property Authority 29 ANNUAL REPORT 2022/2023

9 AUDIT, RISK AND

INVESTIGATIONS MANAGEMENT

"Transparency in beneﬁcial ownership compliance

is the foundation of trust in the business world."

Business and Intellectual Property Authority 30 ANNUAL REPORT 2022/2023

Business and Intellectual Property Authority 31 ANNUAL REPORT 2022/2023

AUDIT, RISK AND INVESTIGATIONS MANAGEMENT

9.1 Overview This encompasses:

The Internal Audit, Risk, and Investigations department at BIPA carries out a self-reliant, • Assessing the accuracy and trustworthiness of financial and operational data and

unbiased, and advisory role aimed at enhancing BIPA’s operational excellence. This role the methods employed to recognize, measure, categorize, and report such data.

contributes valuable perspectives on the organisation’s dedication to robust governance, • Evaluating the efficiency, cost-effectiveness, and success of resource utilization.

risk reduction, and ethical standards. • Examining the strategies in place for asset protection and, where applicable,

validating the existence of said assets.

This showcases BIPA’s forward-thinking method in recognizing and tackling potential • Scrutinizing the systems implemented to ensure adherence to significant operational

obstacles, thus nurturing reliance, openness, and assurance among both internal and and reporting policies, plans, protocols, laws, and regulations.

external stakeholders. The department plays a pivotal role in aiding BIPA in achieving • Appraising operations or initiatives to confirm their alignment with established

its goals by applying a methodical and rigorous approach to assess and enhance the objectives and goals, and their adherence to planned procedures.

efficiency of risk management, control, and governance procedures. • Investigating specific operations upon request from BIPA Management and/or the

Board of Directors. BIPA upholds the highest professional standards, as endorsed

by authoritative bodies like the Institute of Internal Auditors.

9.2 Independence and Accountability

The Chief of the Internal Audit, Risk, and Investigations unit (CRA) holds a functional 9.4 Internal Audits conducted for FY 2022/23

reporting relationship with the Board of Directors and an administrative reporting

relationship with the Chief Executive Officer (CEO). Alongside these established reporting Internal audits conducted for the reporting financial year amounted to eight (8). Seven (7

structures, the CRA possesses both the authority and responsibility to promptly notify are risk based internal audits and one (1) was an assurance audit.

the Board of Directors about instances of fraud, corruption, or other matters that, in their

judgment, could potentially cause substantial harm to BIPA. 9.4.1 Major audit findings

The Chief of the Internal Audit, Risk and Investigations division is accountable • In total, 89 audit issues were raised and 65 (73%) were mitigated and closed

to: whilst the remaining 24 (27%) remained open at the end of the review period.

• Provide an assessment on the effectiveness and efficiency of the internal control, • From the 24 audit issues that remained open, 23 were current and 1 is aging in

risk management and governance processes regarding the engagements in the the over 120 days category.

Audit Plan.

• Report significant issues related to the processes for controlling the activities of

BIPA and its affiliates, including potential improvements to those processes, and 70

provide information concerning such issues. 60

• Provide information periodically on the status and results of the Audit Plan and the 50

sufficiency of department resources. 40

30 23

9.3 Audit Scope 20

10 1

0 0 0

The Internal Audit, Risk, and Investigations division’s scope encompasses evaluating 0

CLOSED Current 30 Days Over 60 Days Over 90 Days Over 120 Days

the sufficiency and efficacy of BIPA’s governance, risk management processes, internal Over

control framework, and the quality of performance in fulfilling assigned duties to realize

BIPA’s declared aims and objectives.

Audit Issue Tracking Status

Business and Intellectual Property Authority 32 ANNUAL REPORT 2022/2023

9.4.2 Improvements on internal controls due to audit findings 9.6 Risk Register Status

From the audit findings and subsequent recommendations made by the Internal Audit The total number of strategic risks for the period under review were 17. One of the risks

and Risk department, the following improvements were noted: is complete and removed from the report in Q2 of FY 22/23.

1. Management improved response times to queries on public email accounts .

2. Management enforced compliance by ensuring that employees carry out processes

in accordance with set policies and procedures.

Risk Implementation Progress

3. Management implemented log books to monitor the movement of files between

divisions. 0%

4. Management implemented checklists in files being circulated for better control. 41%

41%

9.5 Investigations conducted for FY 2022/23 18%

9.5.1 Major findings

CATEGORY NUMBER STATUS MAJOR FINDINGS

Alleged forged 3 Complete 1. CM2- Forged signatures

signatures CM27- Incorrect ID number Final test and maintain In progress Planned Behind schedule

2. Questionable signatures

Risk implementation progress by % as at 07 March 2023

3. Forged signature on share certificate

Fake Founding 1 Complete Fake CC1 used for business and tax registration

Statement purposes

Illegal removal of 1 Complete Incorrect amendment procedure followed on the

Risk Category

Accounting Officer change accounting officer

Reputational

Risk Operational

Compliance 11% Risk

Investigations conducted during 2022/23 28%

Risk

11%

Financial Risk

Strategic Risk

44%

Risk category by %

Business and Intellectual Property Authority 33 ANNUAL REPORT 2022/2023

9.7 Fraud Hotline Statistics 9.8 Enhanced Compliance - Implementation of the

Mutual Evaluation Report (MER)

BIPA undertook a Fraud Awareness campaign during quarter 4 of the year under review.

The campaign was aimed at improving internal and external awareness on fraud and The Mutual Evaluation Report of Namibia was finalised by and adopted at the 44th Eastern

related matters. In addition, the camapign further aimed to reduce the number of fraud and Southern Afica Anti-Money Laundering Group (ESAAMLG) Task Force Meeting on 02

related incidents related to BIPA activities. The campaign promoted the Fraud Hotline September 2022 in Livingstone, Zambia. As a premise, Namibia was under a 12-month

number and as such, we onserved an increase in the number of reported incidences evaluation period to implement actions set out by the Financial Action Task Force (FATF)

during the period. that will address the deficiencies that have been identified during the assessment and

reported in the Mutual Evaluation Report. Such deficiencies related to the gaps in the

Six incidents were reported during the period of 01 April 2022- 31 March 2023. laws, systems and process that would give rise to increased money laundering, terrorism

financing and proliferation financing activities in Namibia, specifically when legal persons

No. Contact per Medium Type (companies and close corporations) are used to drive and hide such illicit activities.

Phone

E-mail BIPA, having primarily been responsible for addressing the deficiencies under Immediate

33.33%

Outcome 5 and Recommendation 24 of the FATF recommendations, which includes

making provision for public availability of information on the creation and types of legal

persons and arrangements, as well as the transparency and beneficial ownership of such

legal perons.

66.67%

The above is further reiterated by Section 4(1)(a) Financial Intellegence Act (FIA), 2012

which requires the Registrar of Companies and Close Corporations to annually collect and

keep accurate and up to date prescribed information in respect of members / directors,

shareholders and beneficial owners of companies and closed corporations.

An Action Plan has been developed and progress on the implementation of same has

been continuously and closely monitored.

Fraud incidents reported FY 22/23 per catergory

9.8.1 Regulatory Compliance Universe

No. Reports per Category The compliance function has identified the following key regulatory areas of the

compliance landscape:

• Companies Act No. 28 of 2004

• Close Corporations Act No. 24 of 1988

2 • Copyright & Neighbouring Rights Protection Act No. 6 of 1994

No Reports

• Industrial Property Act No.1 of 2012

1 33.33% 33.33% • Merchandise Mark Act No.17 of 1941

16.67% 16.67% • Financial Intelligence Act No. 13 of 2012

• Public Procurement Act No. 15 of 2015

Fraud Governance Equiry Corruption • Public Enterprises Governance Act No. 1 of 2019

Category • Business and Intellectual Property Authority Act No. 8 of 2016

Fraud incidents reported FY 22/23 per medium type

Business and Intellectual Property Authority 34 ANNUAL REPORT 2022/2023

10 & COMPLIANCE

LEGAL &

LEGAL COMPLIANCE

"Inthe

"In theglobal

globalbusiness

businesslandscape,

landscape,compliance

complianceisis

nolonger

no longeraachoice

choicebut

butaanecessity."

necessity."

Business and Intellectual Property Authority 35 ANNUAL REPORT 2022/2023

Business and Intellectual Property Authority 36 ANNUAL REPORT 2022/2023

LEGAL & COMPLIANCE

10.1 Overview

The Legal and Compliance Department plays a crucial role formed in terms of the relevant laws. As such, BIPA Project. One report was submitted to the Bank of Namibia

in ensuring that BIPA executes its mandate as a regulator, therefore serves as the first point of contact for other via the Financial Intelligence Centre (FIC) to provide an

but equally that the Authority remains compliant to laws competent authorities when they seek information about update on the Corporate Law Reform Project.

that applies to it. Further the department is responsible legal persons, including information about the members,

for ensuring that the Authority’s operations, policies, and shareholders and directors. Very often, such requests are 10.8 Corporate Law Reform and

served onto the Registrar by virtue of legal summons, what

practices are in alignment with relevant laws, regulations,

often requires the Registrar to provide the information or

Legal Instruments Update

and industry standards. This department plays a vital role

in minimising legal risks and upholding ethical standards. to depose to an affidavit. The Authority started the review process for the Companies

Act, 2004 (No. 28 of 2004) and Close Corporations Acts,

Further to this, the department also ensures the The latter is used for investigative ad legal proceedings 1988 (No. 26 of 1988) for the purpose of developing a

following: amongst others. In the financial year under review, the more simplified, modernised and, consolidated corporate

Authority received a total of 228 requests form law law draft Bill which will in turn speak to the outdated laws

• Enhancing good corporate governance

enforcements agencies, in which all of the above requests and business practices that are no longer on par with

• Ensuring that relevant Board approved policies are

required the deposition of an affidavit. global standards.

effective and complied with

• Providing legal advice to internal and external

stakeholders 10.5 Statistics on the number of In addition to the above corporate law reform project,

Subpoenas by the Court the Ministry of Industrialisation and Trade, together with

• Ensuring stakeholder relationships are effectively the Authority, commenced the development of the stop-

managed and complied with appropriately In the financial year under review, the Authority did not gap amendments to both the Companies and Close

• Strategic Compliance Risk Management receive any subpoenas from court, however, the Authority Corporations Acts, as part of its action plans in fulfilling

was cited in a number of cases as a respondent for multiple the recommendations set by the Financial Action Task

10.2 Strategic Objectives case proceedings. Force (FATF) Mutual Evaluation Report to ensure Namibia

becomes compliant to measure for Anti-Money Laundering

• Ensure Financial Sustainability

(AML), Anti-Terrorism Financing (ATF) and Anti-Proliferation

• Ensure and Maintain Stakeholder Confidence 10.6 Number of Internal Requests Financing (APF).

• Ensure Legislative Alignment to National, Regional for Legal Advice

and International Obligation As such, a draft bill was finalized this financial year, following

• Enhance Corporate Governance and Risk The total number of internal legal advice amounts to 8 by stakeholder engagements in the last quarter of the year,

Management for the reporting period. This excludes the amount of through the hosting of a high-level International Roundtable

• Deliver quality simple and accessible services draft and/or review requests for Contracts, Policies and Consultative Forum review of the current corporate law

• Achieve Mutually Beneficial Stakeholder relationships Memorandums of Understanding (MoU). and was attended by a high-level panel of experts across

various industries, as well as the chief drafters on the Bill

10.3 Personnel Capacity 10.7 FIC Report Submissions to solicit inputs into the law. The round table paved a way

for the regional stakeholder engagements which sought

For the period under review, the department had 3 BIPA and Bank of Namibia (BoN) entered into a grant nationwide comprehensive inputs and is planned toward

permanent staff members, 2 legal officers and 1 para-legal agreement and the purpose of this agreement was the new financial year.

assistant, in addition to two (2) temporary legal officers. for the implementation of the Corporate Law Review

Project, where the funds were channelled towards the As part of the legislative review of updating outdated

engagement of services of international consultants to governing laws, the Copyright and Related Rights Bill was

10.4 Request for information/files

assist with the finalisation of the project and local services developed and driven mainly by BIPA’s Intellectual Property

by Competent Authorities associated with implementation of the project. In light of department. The Bill is under consideration by the Office

BIPA, by law is the competent Authority and keeps record the abovementioned agreement, BIPA is obliged to provide of the Attorney General for Constitutional scrutiny and is

of all legal persons (companies and close corporations) quarterly updates or reports to BoN on the status of the anticipated for tabling during the 2023/24 financial year.

Business and Intellectual Property Authority 37 ANNUAL REPORT 2022/2023

11 BUSINESS STRATEGY

"A compliant business landscape is one that thrives

on ethical responsibility."

Business and Intellectual Property Authority 38 ANNUAL REPORT 2022/2023

Business and Intellectual Property Authority 39 ANNUAL REPORT 2022/2023

BUSINESS STRATEGY

11.1 Overview 11.4 Projects Undertaken for FY 2022/23

The Business Strategy Division is responsible for driving and coordinating the The Business Strategy Office has for the financial year had a supporting function and

implementation of key strategic initiatives across the Authority and provide strategic assisted other departments with the delivery of strategic projects.

insights necessary to improve the overall operational effectiveness of services as directed

by the CEO. Below are projects that are currently underway under the Business Strategy

division:

11.2 Strategic Objectives 1. Enterprise Resource Planning (ERP) Project

2. iBRS Project

Strategic Pillar Objective 3. Registry Data Completeness Project, in conjunction with the Beneficial Ownership

project

• Growing Revenue by 10% annually 4. Organisational Structure Review

• Maintain annual Liquidity Ratio Standard 5. Organisational Culture Change Project

Financial Sustainability

• Grow Assets (Financial Position)

• Manage Costs 6. Annual Financial and Business Planning (Annual Project)

• Improved Customer Satisfaction

Stakeholder Confidence

• Improved Stakeholder Relationships 11.5 Planned projects for FY 2023/24

• Enhance Process Optimisation Although there are no projects budgeted for under the division for the new financial

• Enhance Corporate Governance and Risk year, the business process re-engineering training for Managers and Supervisors falls

Internal Processes & Gover-

Management as a project under the Office of the CEO and will be carried out by the Business Strategy

nance

• Ensure reputable business and IP Department.

environment

The business process re-engineering has become a strategic initiative and the training

• Employee Engagement

• A Conducive Organisational Culture aims to capacitate mid-level manager to be able to develop and implemented simpler

Operational Excellence • A Competent Workforce and smarter business process with the aim to create efficient and effective business

• Fit for Purpose Organisational Structure operations. It is also important to note that some of the projects of the FY 22/23 will spill

• Ensure successful delivery of the IT Strategy over into the new FY 23/24.

11.3 Personnel Capacity 11.6 Challenges for FY 2022/23

For the period under review, the Business Strategy department consisted on 1x A challenge that has been experienced in the business strategy department is the low

permanent employee, whereas the position for an Administrative Assistant was vacant. personnel capacity to effectively carry out projects. With the introduction of the graduate

programme, the department will make us of graduates to enhance divisional capacity and

carry out projects.

1x Manager: Business

Strategy

Diana Katjiuongua

1x Administrative

Assistant

Vacant

Business and Intellectual Property Authority 40 ANNUAL REPORT 2022/2023

12 OPERATIONS

"Ethical conduct is the cornerstone of a

transparent and honest business reputation."

Business and Intellectual Property Authority 41 ANNUAL REPORT 2022/2023

Business and Intellectual Property Authority 42 ANNUAL REPORT 2022/2023

OUR CORE OPERATIONS

12.1 BUSINESS REGISTRATION SERVICES (BRS)

Business Registration Services Division Team

12.1.1 Overview DOMAIN NATIONAL LEGISLATION

Legalising business conduct through business registration is a fundamental aspect of a Companies Act, 2004 (Act No. 28 Of 2004)

country’s economic eco system and as such,a BIPA plays a crucial role in facilitating the Provides for the establishment of the company registration

process of business formation, which is essential for promoting entrepreneurshipand Company

office, appointment of the Registrar and for the incorporation,

Registrations

creating a conducive environment for economic growth. management and liquidation of companies and incidental

matters.

Formalisation of businesses enhances transparency, accountability and provides

access to financing, making it easier for businesses to scale and contribute Close Corporation Act, 1988 (Act No. 26 Of 1988)

Provides for the establishment of the Close Corporation

to the economy. Section 5(b) of the BIPA Act, 2016 mandates the Authority to regulate and

registration office, appointment of the Registrar and the

administer the registration of businesses under the applicable legislation as follows: Close Corporations

formation, registration incorporation, management, control and

liquidation of close corporations and for matters connected

therewith.

The Financial Intelligence Act, 2012 (Act 13 of 2012).

Companies and Close In terms of Section 4, the Registrar of Companies and Close

Corporations Corporations annually collects and keeps accurate and up-to-

date prescribed information and report as required.

Business and Intellectual Property Authority 43 ANNUAL REPORT 2022/2023

12.1.2 Operational Structure 12.1.3.1 Close Corporations

There are four streams within the Business Registrations Department to ensure the A Close Corporation (CC) is a legal entity that is created to conduct business and drive

execution of the relevant laws: profits. Close Corporations can be taxed and can be held legally liable for its actions. The

corporation becomes a legal entity that is separate from its founding members and it

i. Stream 1: New Business Registration Division therefore provides the members of the CC with limited liability as per Section 2(3) of the

• Administers the registration of new Company applications; Close Corporation Act, 1988.

• Administers the registration of new Close Corporations;

• Facilitates the registration Online business registrations. The formation and registration of Close Corporations are in accordance with Act, and

there is a mminimum requirement of one with a maximum of ten members, who own and

ii. Stream 2: Maintenance and Compliance Division manage the Close Corporation. Ownership of the Corporation must add up to a 100%

• Administers the function of maintenance / amendments of existing Companies and each member’s interest is expressed as a percentage. The CC is liable to pay taxes

and Close Corporations. and a member of a CC can be personally held liable for the losses of a CC if the member

acts carelessly, or without skill.

iii. Stream 3: Annual Returns, Deregistrations and Liquidations Division

• Administers the deregistration, lliquidation and restoration function of the How to know if this is the business entity you want to register?

organisation; • The Close Corporation must be profit making in its intentions.

• Administers the Annual Return function of the organisation. • It is an appropriate vehicle for a small business.

• It is relatively simple and inexpensive to set up.

iv. Stream 4: Regional Business Registrations Division • It does not have the legal complexities compared to a company.

• Administers the registration of businesses for regional clientele, including: • Every member act as an agent of the CC and the CC is bound by the member’s

o New Business Registration actions.

o Maintenance and Compliance

o Annual Returns, Deregistration’s and Liquidations

o Facilitating record requests and 12.1.3.2 Companies

o Dealing with general client enquiries

A company is a more complex business structure and is a separate legal entity with certain

rights, privileges, and liabilities beyond those of an individual. The owners of a company are

12.1.3 Types of Business Entities Registered by the Authority its shareholders who then elect directors to oversee operations as well as to carry out major

policy related tasks and make day to day decisions. The formal establishment and ongoing

The decision on what business structure to choose is largely dependent on the regulatory requirements are most complex for a company. When registering a company, there

circumstances of the prospective business owner or owners. The type of business entity are certain statutory requirements, extensive formalities and ongoing reporting requirements

a client choose will depend on four primary factors: liability, taxation, record-keeping and as set out in the Companies Act, 2004. The company has a life of its own and does not dissolve

ongoing regulatory requirements after registration. when ownership changes. Companies may be formed for profit or non-profit purposes and

can assume any of the following forms:

Of all the choices to make when starting a business, one of the most important

considerations is the type of legal structure the client selects for their business entity. • Private Company (Pty) Ltd - Limited to 50 shareholders

Not only will this decision have an impact on how much the business pays in taxes, but it • Public Company (Ltd) – Unlimited shareholding options

will also affect the amount of paperwork the business is required to do and the personal • Non-Profit Association incorporated under Section 21

liability it may face, including the ability to raise capital. • Foreign (External) Companies

Here is a quick look at the types of business entities registered by BIPA and the differences Having regard to the above, it is important to note that the people, or organisations that a

between the business entities: business entity will interact with, such as potential investors or government departments may

prefer a particular business structure. This may influence a client’s decision in deciding what

type of business to register. Whichever business entity they decide to register, it is pertinent

to remain cognisant and compliant to the requirements of the law that governs the structure.

Business and Intellectual Property Authority 44 ANNUAL REPORT 2022/2023

12.1.4 Benefits of Owning a Registered Business 12.1.5 Business Registration Statistics

Registering a business with BIPA is a rewarding choice for prospective business people 12.1.5.1 Transactions processed for the 2022/23 Financial Year

and there are a number of important benefits of formalizing your business structure.

During the lifespan of a registered entity, the business may lodge applications for

i) Establishing a Business Bank Account amendments, conversions from one type of entity to another, deregistration’s, and

restoration, as prescribed.

To open a business bank account; you need to provide proof that your business is formally

registered with BIPA. A business bank account is important for a business owner as it For the financial year under review, the Authority recorded a total of 154,838 applications

ensures that they can separate their personal finances from those of the business. When on the Integrated Companies Registration System (ICRS), representing a 3% increase

conducting business; it adds professionalism and credibility to their entity. in the number of applications received during the current review period, compared to

the previous financial year. It must be noted though that not all of the above referenced

ii) Access to finance applications resulted in registrations.

Prospective lenders and investors often require proof of business registration along with 12.1.5.2 Total Registrations for the Financial Year 2022/2023 (Overall)

other application requirements before approving a business loan or investing in such a

business. For the financial period 2022/23, the Authority registered a total of 12,577 businesses,

compared to 12,925 for the FY 2021/22 financial period. It is important to note that

iii) Taxes and Liabilities applications are received through different streams, namely the BIPA Head Office in

Windhoek and through the BIPA Walvis Bay branch.

Registered business entities are required to have a Tax Identification Number (TIN) with

the Namibia Revenue Agency (NAMRA). This ensures the legitimacy of the business entity The businesses are registered in the following categories as presented below. Close

as a legal entity that complies with local tax laws. Further, it also ensures compliance Corporations continue to represent the highest registration on the business categories

with legal standards for bookkeeping and accounting. Registering for tax also provides an at 87%. For the 2022/23 financial year, the Authority saw a 3% decline in the number of

opportunity for benefits such as tax exemptions for registered businesses. businesses registered during 2022/23, compared to the 2021/22 financial year, as can be

seen in the table below.

iv) Reputation with Customers

Conducting business whilst not registered may create the impression to potential client

and creditors that your business is a “fly-by-night” operation and hence may not want Total registrations for 2022/23 FY (Overall) per quarter

to do business with such an individual. To establish trust with clients and prospective

Organisation Quarter 1 Quarter 2 Quarter Quarter Total % per

creditors, it is important for a business to be registered.

Type 3 4 business

Nature of Training # Nature of Training

1 (PTY) Ltd Training 32 Foundations of Risk Management

2 Leadership and Change Management 33 Fraud awareness and investigations training

3 Advance copyright and related rights 34 ICRS & IPAS training

4 Advanced Governance, Risk and Compliance (GRC) 35 IFRS training

5 Agile Business Analysis 36 Institute of Risk

6 Archiving and Records Management 37 Internal Auditing & Essentials of Internal Auditing

7 Basic Companies and Close Corporations Act 38 Investigations Training

8 Board Governance Training 39 IP Training

9 Call Centre Training 40 IP, Competition, Contract and Unjustified Enrichment Law

10 Certified Information Systems Security Professional 41 IPSAS Training

11 Change Management 42 Management Administration

12 Cobit fundamentals 43 MBA Preparatory Course

13 Communication Skills 44 Office administration & Customer care

14 Compliance Management 45 Patents Examination & basic

15 Copyright 46 PCT Examination & administration

16 Copywriting for Digital Marketing 47 Procurement Management Training

17 Data Analysis 48 Project Management (Intermediate Level)

18 Data law 49 Project Management Foundations

19 Data Protection and privacy 50 QMS Training

20 DL-001 Primer on Intellectual Property 51 Recruitment, Interview and Selection Training Course

21 DL-101 General Course on Intellectual Property (version 2) 52 Regional training on e-Workshop - WIPO

22 DL-301 Course on Patents 53 Saga 300 People

23 DL-450 Intellectual Property management 54 Service desk manager

24 ERP Training 55 Supervisory Management

25 Excel Training 56 Telephone Etiquette Training (Call Centre Specific)

26 Excel Training advance 57 Training on Patents examination (In-house training)

27 Executive Development - Coaching for high Performance 58 Training on Trademark Examination

28 Executive Development 59 Training on Vienna Classification

29 Executive development program (EDP) 60 Transport & Fleet Management Logistics

30 Executive Skills for PAs and Administrators 61 Union Induction

31 Fortinet NSE 4 Network Security Professional 62 Windows Server 2019 administration

Business and Intellectual Property Authority 79 ANNUAL REPORT 2022/2023

12.5.13. Workplace Culture

The Human Capital Department strives to uphold BIPA’s values aimed at improving

organisational culture and operations. A culture transition framework was developed,

which informed the organisation on how to makes decision, treat its employees and

clients and how BIPA business operations are to be managed and transformed.

During the reporting period, HCM conducted an employee satisfaction survey to identify

employees’ needs and work toward creating an environment where employees feel

valued and included. The main purpose of the survey was to determine and measure the

level of satisfaction, collect insights on different work-related issues like compensation,

benefits, appraisals, policies, retention, politics, and many other factors. The survey

measured how employees’ primary needs and interests are being addressed and how

HCM can continuously work on addressing any changes that occur in employee needs

and interests.

The total participation rate was at 90% (104/115) and the overall satisfaction rate was

Employee training session 73%. The average number of employees have shared that they understand how their

work relates to BIPA’s mandate and that they would advocate BIPA’s work to others. From

the survey, it was only noted that staff enjoy working remotely and they are proud to be

part of BIPA. Further, they shared that their current state of health allows them to perform

12.5.12. Employee Relations

their job effectively. The survey also identified that an average of 23 % of employees are

12.5.12.1 Investigations not entirely satisfied.

For the period under review, the HCM department have done 2 investigations on matters The findings from the employee satisfaction survey served as an important tool to inform

pertaining to Social Security fraud and Fraudulent amendments that were made to a the HCM and the rest of management how employees feel about the working environment,

Founding Statement. These two investigations have been completed and closed. It must overall employee well-being, remuneration and other benefits of the organisational

be noted that this above investigations only involved internal staff, and does not account culture. The survey assisted HCM to look at the root cause and resolve existing problems

for total investigation conducted by the Audit and Investigations Department. that were highlighted in the survey to improve the culture, training, and development that

will enhance the business operations and transformation.

Matter investigated Status

There were various strategies developed to achieve an improved culture, as

Social Security Fraud Investigations Completed outlined below:

Fraudulent amendments to Founding statement Investigations Completed

Strategy 1: Develop a leadership culture that aligns with BIPA’s mission and values

Strategy 2: Improve communication

12.9.2 Disciplinary Hearings

Strategy 3: Create a culture that values creativity and innovation

For the 2022/2023 reporting period, there was only one disciplinary hearing that took

place regarding the Social Security fraud. The hearing was dismissed.

Strategy 4: Enable work-life balance

Disciplinary hearing Status

Strategy 5: Effective Talent management

Social Security Fraud Case dismissed due to witnesses not showing up

Strategy 6: Improving processes to be efficient but with sufficient flexibility

Business and Intellectual Property Authority 80 ANNUAL REPORT 2022/2023

12.5.14. Succession Planning 12.5.16. Human Capital Policy Review Project

Succession planning is a critical strategic process for any organisation and it involves BIPA continued with the comprehensive review of existing HCM practices and policies to

identifying and developing individuals within the company to assume key leadership roles determine if all essential HCM areas are covered and how it compares to the governance

in the future. It is not limited to just top-level executives; it can encompass various levels structure of the Authority and which areas needs to be introduced or reviewed to speak

of leadership and critical positions within the organisation to ensure business continuity. to best practices.

By investing in the development of internal talent and ensuring a smooth leadership

transition, BIPA will be in a better position to navigate challenges more effectively and Additionally, the project documents all Human Capital Management responsibilities and

position themselves for continued success. practices including recruitment and staffing, performance evaluation, staff development,

remuneration and rewards, reorganisation, union negotiations and employee relations.

BIPA understands the need for a succession plan and as such, a Succession Plan has been The project was initiated in the previous financial year and is currently still on-going.

developed during the reporting period that will cater for leadership, technical and scarce BIPA is delighted to report that the project is progressing smoothly, considering capacity

skills positions. The succession plan is anticipated to be approved by the Board in the new constraints and frequent stakeholders consultations. The main purpose of this project is

Financial Year 2023/24. to modify existing policies, standards and procedures that will support the change that is

constantly taking place in the Human Capital Management environment. A total of eleven

(11) HR related policies are currently being reviewed.

12.5.15. Organisational Structure

Since its inception, there have been a number of various factors that influenced the # Existing Policy Name Workshop recommendations Proposed Policy (Name)

decision to review BIPA’s organisational structure, these included changes in business

strategy, growth, provision for technological advancements and the need to improve 1.

Conditions for Employment Leave aspects incorporated

and Benefits Policy Conditions of Employment

efficiency. The change will involve, among others, making changes to how the company into the Conditions of

Policy

is organised, how roles and responsibilities are defined and how communication and 2. Leave Policy Employment Policy.

decision-making flow within the organisation. 3. Remuneration Policy

Rewards aspects incorporated Remuneration and Reward

into the Remuneration Policy Policy

BIPA advertised and awarded the bid (Ref. SC/RP/BIPA-06/2021) to BDO Advisory Performance Management

4. Recognitions aspects

Services (Pty) Ltd in July 2021 as the bidders to facilitate the review and re-align the BIPA Policy incorporated into the Performance and Recognition

structure to align with the above-mentioned factors. The Departmental microstructures Performance Management Policy

were endorsed by the Project Steering Committee and submitted to HRRC for further 5. Recognition and Rewards Policy Policy.

consideration. Recruitment and Selection

6. Retention aspects

Policy incorporated into the Recruitment and Retention

The consultant, BDO Namibia has then suggested the project commence with the

Recruitment and Selection Policy

following project phases with the aim to complete the same in Quarter 1 of the next 7. Attraction and Retention Policy Policy.

financial year 2023/23:

• Job Analysis and Profiling; 8. BIPA Ethics Code Disciplinary aspects incor-

porated into the BIPA Ethics Business Ethics Policy

• Job Evaluation; Disciplinary Code and Code.

Procedures

• Costings per department and overall, for the organisation (current and proposed Human Capital Development

10. Training & Development Policy Rename the policy.

as per the draft structure; and Policy

• Assessment on affected personnel and proposed alternatives to those affected. Job Evaluation Policy and Job Evaluation and Grading

11. Rename the policy.

Procedures Policy

Business and Intellectual Property Authority 81 ANNUAL REPORT 2022/2023

12.5.17. Employee Engagement This translates into a 56% union membership status as shown below:

The Authority, through its HCM department, is committed to ensure that its employees

are engaged and empowered, motivated, perform consistently and are aligned with the

goals and objectives of the organisation.

Trade Union Membersip FY 22/23

HCM strives to create platforms that will enhance employee engagement through a series

150 115 100%

of activities ranging from wellness initiatives, soft rewards and appreciation days. For the 108 94%

80%

period under review, this included a Team Building, the BIPA Year-end Function, Mother’s 100

Day celebration, Valentine’s Day celebration, Father’s Day celebrations, Independence Day 60 56% 60%

48 44%

celebrations, all with the aim to improve team synergy and to create sense of belonging 50 40%

and team cohesion. 20%

0 0%

Total # of Employees within Active union Non-members

employee(s) bargaining unit members

Members/Non-Members % Representation

Trade Union Membership for the FY 22/23

12.5.19. Occupational Health and Safety

For the period under review, the Wellness and Employee Relations division have

endeavored to place employee safety high on the priority list and have fire extinguishers

and the emergency horns in the event of a fire installed for the Walvis Bay office. Further to

this, two (2) First Aid Kits were mounted at the Walvis Bay office in addition to Emergency

Numbers being made visible on notice Boards.

HCM activities for the FY 22/23

12.5.18. Trade Union Membership

Trade union representation plays a vital role in protecting the rights and interests of

workers within an organisation. Advocating for trade union representation can have

several benefits for employees and the overall work environment. For the period under

review, BIPA reported just over one hundred and eight (108) employees fall within the

bargaining unit. However, only sixty (60) employees have an active union membership

from the Namibia Public Workers Union (NAPWU).

Business and Intellectual Property Authority 82 ANNUAL REPORT 2022/2023

12.6 MARKETING, CORPORATE COMMUNICATIONS AND CLIENT SERVICES MANAGEMENT

Client Management Services

12.6.1 Division: Marketing and Corporate Communications 12.6.1.2 Strategic orientation

12.6.1.1 Overview Although the Marketing department supports the strategic plan in varying roles to

achieve the Authority’s objectives and initiatives, the division is notably concerned with

The Marketing function of BIPA is headed by the Executive: Marketing, Corporate the promotion of stakeholder confidence and the development and implementation of

Communications and Client Services Management, who is ultimately responsible for brand management plan, a key pillar of BIPA’s 5-year strategic plan.

improving and maintaining the brand reputation and communications functions of the

organisation; as well as ensuring effective stakeholder management, engagement and

customer satisfaction as part of the BIPA Integrated Strategic Business Plan 2021/22-

2025/26. The department is furthermore tasked with the ethical reputation management

of the authority and the education of the public on its mandate and services.

This is accomplished through a focus on

improving customer satisfaction and building

Marketing and Corporate Communications (MCC) has, over the reporting period, adopted

a proactive approach to ensure that BIPA’s reputation and credibility remains intact and trusted stakeholder relationships.

that confidence amongst its various stakeholder groups are enhanced and maintained.

The approach has generally been, the use of public relation strategies as opposed to

marketing/advertising tactics. The further adoption of a transitional approach from

reactive to proactive communications to better position a brand is something that BIPA

is working to adopt for the new financial year FY23/24. This can be seen through the

deliberate efforts that BIPA has made to improve stakeholder relations.

Business and Intellectual Property Authority 83 ANNUAL REPORT 2022/2023

12.6.1.3 Brand Audit and Implementation of the new Brand Strategy

A key performance indicator within the BIPA strategic plan is the development of a brand

strategy that would guide and support the Authority’s brand building initiatives. The

development of the strategy was dependent on the conducting of a brand audit to first

determine the Authority’s current brand position and understand the perceptions held

by its stakeholders. The bid was awarded to Cornerstone Consultants, who conducted

a brand audit and has during the reporting period held various workshops and surveys

with internal and external stakeholders to put together a brand strategy as well as a new

Corporate Identity Brand Guide that will guide the brand’s new strategy and how it is

applied to all marketing and communications material.

The BIPA Marketing team has starting working towards the implementation of the

new brand strategy in a phased approach, which will start by sensitising the internal

stakeholders (BIPA employees) to the new strategy during Q1 FY 23/24 and ensuring that

it is fully adopted before proceeding to implement to external stakeholders. All Marketing

and Communication efforts and materials will start to transition to adopt the new brand

strategy in a phased approach.

12.6.1.3.1 Brand Audit Findings

While the Marketing and Communications department strive to report on BIPA as a

Marketing and Corporate Communications Team

reputable organisation, there have been instances where the media has influenced public

perception through misleading headlines that in turn leads to a negative sentiment from

the public. The audit findings showed that BIPA’s stakeholder expectations are split and 12.6.1.3.2 Brand Strategy & Positioning

requires rigorous strategy implementation to reposition the brand and enhance trust and

confidence by stakeholders in the BIPA brand. The key objective of BIPA’s brand strategy is to aid the organisation in building a strong

and trusted brand that will resonate with all stakeholders, contributing towards BIPA’s

business strategy on 3 core levels: growing the value of our assets, building stakeholder

confidence and driving operational excellence.

The new strategy and brand positioning are aligned with the vision of BIPA to be the

catalyst of economic growth for a transformed business landscape and innovative nation.

The positioning for BIPA is Shared Ownership, which is about shared responsibility,

shared values and a shared vision for the future.

12.6.1.3.3 Brand Guide (Corporate Identity Guidelines)

Further to the establishment of the new brand positioning, the visual identity of the brand

also underwent a change to speak to the new vision of BIPA. The new visual identity is

symbolic of the ripple effect, which is representative of the vision of BIPA as the catalyst

for economic growth. The overlapping circles are symbolic of commonality and strength

in coming together and also once again, echoes Shared Ownership as a collective

Public perception of BIPA reputation responsibility.

Business and Intellectual Property Authority 84 ANNUAL REPORT 2022/2023

12.6.1.4. 1 Number of Stakeholders engaged for the FY 22/23

Engagements were targeted at various industry players, key strategic partners, employees

as well as BIPA clients.

BIPA new brand guidelines

12.6.1.4. Gearing Towards Better Engagement with Stakeholders

For the year under review, the Marketing and Corporate Communication department

managed to successfully engage key stakeholder groups.

Stakeholder Engagement per department for FY 22/23

Improving stakeholder engagement is The BIPA CEO further ensured regular communication and meetings with the BIPA Board

essential for building positive relationships, of Directors, the World Intellectual Property Organisation, ARIPO and other intellectual

property offices around the globe which led to the formation of strategic partnerships.

enhancing transparency, and achieving

organisational goals, which is something the For the reporting period 2022/23, the department has engaged in numerous face-to-

face stakeholder engagements including business registration and intellectual property

MCC strives to accomplish and improve on information sessions, consultations with relevant stakeholders and educational awareness.

with every financial year. The impact of the engagement sessions has led to an increase in stakeholder satisfaction

to 87,5%, as can be seen from the results of the Stakeholder Survey conducted in March

2023.

Business and Intellectual Property Authority 85 ANNUAL REPORT 2022/2023

ii. World IP Day – Otjiwarongo

Every April each year, the world celebrates World intellectual property (IP) day, the

celebration is aimed to increase public understanding and awareness of intellectual

property.

With this year theme being Women in IP, the World Intellectual Property organisation

in collaboration with BIPA coordinated and facilitated a two-day IP training for female

entrepreneurs to celebrate innovation and creative women in the paternity of IP.

Further, the project was served as a platform to ensure that women are recognised

as the creators of specific innovations literary and artistic works, design and software.

The World IP day was celebrated in Otjiwarongo, 26 April 2023.

iii. Development Bank of Namibia / BIPA presentation

0n 21 September 2022 BIPA conducted an information sharing session at Development

of Namibia. The aim of the of the sessions was to address entrepreneurship training

on business registration and protecting of Intellectual property rights. Development

Bank of Namibia is a state-owned enterprise with the objective to provides support to

its target beneficiaries through loans, equity partnerships, financial advisory services

Satisfaction Survey Results for FY 22/23 and export / import finance.

12.6.1.5. Stakeholder Engagement for the FY22/23 iv. Get Set - MTC We Race

During the period under review, the Authority undertook stakeholder engagements On 21 May 2022, the Mobile Telecommunication (MTC) held an exceptional 4x100

that were in line with improving stakeholder relations as well increasing the potential metre race “MTC WE RACE TOGETHER” at independence stadium, Windhoek.

for innovation by tapping into the wider resource of broad stakeholders. Below are the

engagements that took place in this reporting period ending 31 March 2023. The initiative was aimed at tackling various social issues such as Gender Based

Violence (GVB) and eradicating homelessness through the building houses project

the shack dwellers federations. Representing BIPA at the event was Ndeshipanda

i. BIPA and Chinese Business Community foster partnership Thomas, who flew the BIPA flag high and answered to the call of unity.

As part of its strategic objective of improve stakeholder relationships, BIPA continued

to demonstrate its commitment to national and economic development through

v. BIPA engaged secretarial companies at a stakeholder engagement

hosting its first ever stakeholder engagement session with the Chinese business

community at the Chinese embassy of the people Republic of China on 28 march On 02 August 2022, BIPA hosted a stakeholder engagement with secretarial companies

2022. at the village Garden, Windhoek. The objective of the session was to discuss major

issue pertaining to business registrations and to update stakeholders on the new

The session served to promote Intellectual Property Protection and offering

projects that BIPA is embarking on.

educational presentations on the Business Registration sphere.

BIPA CEO, Vivienne Katjiuongua led the discussion and BIPA staff members answered

The session was officiated by The Deputy Minister of Trade and Industrialisation Hon.

to some of the stakeholder’s questions.

Verna Sinimbo, MP and the Ambassador of The People Republic of China, H.E Zhao

Weiping.

Business and Intellectual Property Authority 86 ANNUAL REPORT 2022/2023

vi. Corporate Law Reform International Roundtable

BIPA together with the Ministry of Trade and Industrialisation during the period of 06 – 12 BIPA Chief Executive, Vivienne Katjioungua said that the Authority initiated the legislative

February 2023 hosted a roundtable on the review of the Namibia Corporate law reform reform process in 2019, which include the review of the companies Act of 2004 and the

at Avani Hotel, Windhoek. Close Corporations Act of 1988 in conjunction with other acts.

The aim of the review is to immerge two acts and draft a single corporate business law The reason for the reform of the law is because the current laws regulating the registration

that would regulate all forms of Business entities, including aspects of business rescue of the business entities and their conduct in Namibia is deemed outdated and non-

and corporate governance. responsive to the current needs of the economy.

12.6.1.6 Stakeholder Engagement Plan Performance

Strategic Objective: F1 - Grow Revenue by 10% annually

Target/

Key Activity Focus Area Activity Progress Impact Challenges

Measurement

Engage in Q1 Q2 Q3 Q4 Resources

Stakeholder 3 strategic Over 20 stakeholder engagements constraint

Engagement collaborations attended

20% 40% 100% 100%

with key players

Develop &

implement a 5% increase in The Trademark Campaign resulted in

marketing plan new applications 1478 new trademark applications in Lack of funds is

Develop and limiting the reach

22/23 Q1. Further improved understanding

Advertising & launch 3 and impact of the

33.3% 33.3% 33.3% 100% on Trademark registration and

Marketing awareness campaigns.

protection. Additional campaign

campaigns

includes Fraud, Annual Duty and New

CC Registration

Strategic Objective: S1 - Improved Customer Satisfaction

Key Activity: Target/ Focus Area Activity Progress Impact Challenges

Measurement:

Conduct 70% Customer Stakeholder Information Q1 Q2 Q3 Q4 Over 20 stakeholder engagements were attended

Customer Satisfaction Engagement sharing about BR during Q2 – Q3 for business registration and IP

Satisfaction and IP related - 70% 100% 100% awareness.

Survey issues

Develop 20 - 50% 50% 75% Reinforcing the messaging of BIPA services QMS adverts

adverts for the through telephonic systems (PABX and Call Centre) completed

BIPA phone and And through the QMS screen for service-awaiting

5 for the QMS clients.

systems.

Conduct 4 - 25% 50% 75% To gauge customer satisfaction for improved Only 3 surveys

customer strategies on process efficiencies and client conducted instead of 4

satisfaction experience. planned surveys due to

surveys. capacity constraints.

Business and Intellectual Property Authority 87 ANNUAL REPORT 2022/2023

Strategic Objective: S2 - Improved Stakeholder Relationships

Key Activity: Target/ Focus Area Activity Progress Impact Challenges

Measurement

Implement 100% of stakeholder PR & Media Share information Q1 Q2 Q3 Q4 Improved

Stakeholder plan implemented about BR and IP understanding by

Engagement related issues 20% 30% 30% 50% the media and its

Plan. audiences about

BIPA mandate and its

activities.

Utilise Creating relevance Lack of capacity in

commemorations for BIPA at different Division for on-time

of international 30% 30% 30% 30% touchpoints to further execution.

days to raise establish top of mind

awareness of the brand awareness.

activities of BIPA

Conduct Stake- 70% Stakeholder Stakeholder Participate in one 100% 100% 100% 100% Creating relevance Funds not available

holder Satisfac- Satisfaction Engagement. trade fair/expo for for BIPA at different to participate

tion Survey IP/BR. touchpoints to further in Ongwediva

establish top of mind Trade Fair, albeit

brand awareness. attendance to

smaller fairs and

Improve access to exhibitions.

BIPA staff and services

outside normal trading

venues.

Strategic Objective: I2 - Enhance Corporate Governance and Risk Management

Key Activity: Target/ Focus Area Activity Progress Impact Challenges

Measurement:

Ensure 100% Stakeholder En- Print and distribute Q1 Q2 Q3 Q4 AR submitted ensuring

compliance to gagement the AR 20/21 compliance to legislative

- 100% 100%

CRMPs (Annual provisions and

Reports) improved corporate

governance through

publishing.

Develop, print & 10% 50% 70% AR submitted ensuring Timely completion

distribute the AR compliance to legislative of Audited

21/22 80% provisions and Financial

improved corporate Statements

governance through hampers

publishing. compliance.

Business and Intellectual Property Authority 88 ANNUAL REPORT 2022/2023

Strategic Objective: O1 - Employee Engagement

Key Activity: Target/ Focus Area Activity Progress Impact Challenges

Measurement:

Implement 70% satisfaction Stakeholder Distribute internal Q1 Q2 Q3 Q4 Distributed 48 internal

the employee amongst employees. Engagement communication to communication to staff

engagement plan. staff about issues 100% 100% 100% members. Enhanced

affecting them relationships and

improved staff morale,

100% trust in management

through timeous and

transparent internal

communication.

Implementing the - 100% 100% Launched BIPART

internal culture of a Collaboration

change initiative Internal Culture Change

Campaign to encourage

100% collaboration among

staff. This will remain

a continuous exercise

to improve employee

satisfaction.

Total cumulative percentage (%) implementation per quarter 26.1% 52.4% 69.4% 84.2%

12.6.1.7 Consumer Awareness Campaigns

12.6.1.7.1 Fraud Hotline Awareness Campaign - Be #ScamWise.

In order to enhance public confidence and trust in the BIPA brand, its critical to give

assurance to clients and stakeholders of BIPA’s ability to effectively manage public funds

and its further ability to protect the best interest of its stakeholders.

Through the quarterly audit and risk tracker, it

has come to the MCC’s attention that cases of

fraud, forgery and uttering are on the rise and

as such required a targeted communication Fraud Awareness campaign – Q3 (2022/23)

intervention. The BIPA Marketing team, in conjunction with the Risk & Audit department developed

an awareness campaign, which was launched internally in December 2022, to promote

Fraud Awareness to business and potential business owners about the risks of scams and

fraudulent activities as it relates to business registration.

Business and Intellectual Property Authority 89 ANNUAL REPORT 2022/2023

The campaign further aims to highlight BIPA’s Fraud Hotline. 12.6.1.7.3.1 Campaign Objectives

• The campaign with its tagline, “It’s Time!”, will aim to act as reminders to business

The channels used to run the Fraud Hotline campaign consisted of social media posts

owners and also aim to drive additional revenue for the Authority during the off-

that were boosted for additional reach, newspaper strip adverts as well as A4 adverts

peak months is set to roll-out Q4.

to highlight the significance of the campaign messaging as well as email signature for all

• The campaign also largely focuses on compliance of post registration obligations

employees and internal communication methods. The campaign was also sent through

BIPA’s Mail Chimp email aggregator and radio live reads were also utilised for further

reach of the message.

12.6.1.7.1.2 Campaign objectives:

• Create awareness and promote fraud awareness to potential business owners and

current business owners on the dangers and risks of scams in relation to business

registration and fraudulent amendments.

• To further promote the BIPA toll-free Fraud Hotline and tip-off email address where

the public can anonymously report suspicious activity.

12.6.1.7.3. Annual Duty Reminder Campaign – It’s Time!

Following the success of its first Annual Duty campaign that was rolled out in August

2021 – December 2021, the BIPA Marketing team have noted that awareness to business

owners on their statutory obligations should be reinforced on an annual basis. Annual Duty Reminder Campaign artwork

From the findings, it was noted that February 12.6.1.8 Media Relations and Reputation Management

and March are the year-ends of many CC’s 12.6.1.8.1 Media Exposures

and therefore the team will leverage on the The majority of the exposure for the period was reported through print media with 52

opportunity for business owners to pay their newspaper articles and adverts published, specifically through newsprint, while 19 radio

interviews were reported and 8 television interviews.

annual duties for 2023.

Media Exposures

Q1 - Q3

2% BIPA respsonse to reader

13% complaint

Newspaper Advert

The channels utilised for the campaign was used intentionally to reach a wide audience of 5% 26%

3% Newspaper Article

current and potential business owners and consisted of:

Radio Interview

15%

• Newspaper adverts Reader Complaint in

Newspaper

• Internal Communications Social Media Post

• Radio Live reads 36% TV Interview

• Digital BillBoards

• Internal Communications

• Mail Chimp (Digital email marketing) Media exposure by medium: Q1-Q3 (2022/23)

Business and Intellectual Property Authority 90 ANNUAL REPORT 2022/2023

12.6.1.8.2 Sentiments in the media 12.6.1.9 Internal Communication

During the period under review, the overall sentiment in the media can be described Proactive internal communication techniques are used to strengthen and bolster

as positive to neutral, however the last quarter saw a decline to negative with articles any negative perception that may have been created through external forces such as

published that affected the Authority’s reputation and credibility. The Marketing and stakeholders, the media or the general public. Considering that BIPA’s brand strength

Communications team have strived to keep the lines of communication open with both finds its epicentre from its core internal stakeholders (staff), it is imperative to be

internal and external stakeholders, through means of regular communication updates consistent with driving internal communication strategies that would concretise BIPA’s

regarding matters that make the rounds in the mainstream media, as well as the brand position internally.

Authority’s position on said matters.

BIPA’s Communications team have ensured

that during instances of reputational instability,

internal communications were heightened

with open and transparent

communication at the core.

Improvements toward the public sentiment will receive high priority for Q4 and FY 23/24

as the Marketing and Communications department will implore efforts to increase media

relations through means of thought leadership and regular media engagement through

interviews and monthly media releases.

We anticipate that the law review, new business registration system, data completeness

and waiver project will earn BIPA positive exposure during Q4 and beyond.

Further efforts to improve our client satisfaction are underway, notably with the roll-out of

Public Sentiments (tone) in mainstream media: Q1-Q3 (2022/23) the WhatsApp Chatbot that will allow clients real-time feedback on client queries.

Business and Intellectual Property Authority 91 ANNUAL REPORT 2022/2023

12.6.2 Division: Client Management Services

12.6.2.1 CMS Departmental/Divisional Overview

In the 5-year BIPA Strategic Business Plan, the Registrar has identified the improvement of

its stakeholders’ confidence as a strategic theme. The Client Management Service (CMS)

division resorts under the Marketing, Corporate Communications and Client Management

Services Department. The division plays a critical role of engaging with clients across

various channels and ensure that service excellence is retained across the various client

engagement touchpoints. At its core, the division services all BIPA clients and operates as

the key contact point in person, via the contact centre and via email.

The department attends to client enquiries

and submissions from 08h30 to16h30 from

Monday to Friday. Client Management Services Team

Name Reservation Applications process from 01 April 2022 to 31 March 2023.

• Number of Close Corporation Name Reservations (CC8) processed for the FY

2022/23: 19905

12.6.2.2 Application Referencing, Approvals and Rejections • Number of Company Name Reservations (CM5) processed for the FY 2022/23: 4153

• Total Number of Name Reservations processed for 2022/23 (CC8 & CM5): 24058

All applications and amendments lodged to the Registrar, be it in person or by courier,

are captured and processed on the Integrated Companies Registration System (ICRS).

All applications that are received via the Client Management Services desk receives a

reference number, a number that is used to process the submission on the ICRS.

12.6.2.2.1 Name Reservations

Section 48 of the Companies Act (2004), along with section 12(1) and 19(2) of the Close

Corporations Act (1988), state that a name reservation is the initial step of the business

registration process. Neither of the Acts describe the administration of the reservation

of business names, nor do they set the criteria for the approval of said names. The Acts

solely refer to the undesirability of a business name, and even then, the qualification of

the term “undesirability” is not provided in either piece legislation.

In the year 2022/23, the CMS team, along with the BR, Legal, Compliance departments,

endeavoured to review the name reservation guidelines. An internal document used

to best critique the Name Reservation applications received. This is to ensure that the

Registrar still applies best practices and keeps abreast with contemporary business name

trends. Total Number of Name Reservations processed for FY22/23

Business and Intellectual Property Authority 92 ANNUAL REPORT 2022/2023

12.6.2.2.2 Defensive Names 12.6.2.3 Client Service Engagement Channels

Section 49(2) of the Companies Act (2004) states that any person may apply to the 12.6.2.3.1 Client Service Public Email

Registrar for a defensive name. A Defensive Name is used to reserve a business name

from being used by other entities for a period of 24 months and is thus a non-trading The introduction of the info@bipa.na email has allowed for the requesting of much

entity. And though valid for a period of two years, defensive name holders may renew an needed information, which was previously limited to in-person engagements at

expired defensive for an additional two years only. the physical offices in Windhoek and Walvis Bay. However, the introduction of the

info@bipa.na email has ensured that clients have 24-hour access to the Registrar and has

made it possible for clients to receive much needed feedback within the same day. An

audit done on the BIPA public emails has found that the info@bipa.na email is the only

The following statistics were therefore recorded for defensive names for the FY public email that has a consistent 0 day waiting period for clients. The team successfully

2022/23: received and responded to 2593 emails for the period under review.

a. New Defensive Name Applications Received (CM8): 34

b. Defensive Name Renewal Applications (CM8A): 2 E M A I L E N G A G E M E N T S V I A I N F O @ B I PA . N A

c. Total Number of Defensive Name Reservations processed for 2022/23 (CC8 & CM5): 36 400

Apr-2 May- Jun-2 Jul-2 Aug- Sep-2 Oct-2 Nov- Dec- Jan-2 Feb-2 Mar-

2 22 2 2 22 2 2 22 22 3 3 23

Received Emails 182 184 180 190 214 368 289 214 91 284 213 184

Sent Emails 182 184 180 190 214 368 289 214 91 284 213 184

Email engagements via info@bipa.na for FY 22/23

12.6.2.3.2 Client Service Call Centre

Total Number of Defensive Name Applications for FY22/23 In its efforts to improve its stakeholder relationships and client access to the Registrar, the

BIPA Call Centre was established. The Call Centre serves as an additional touchpoint for

BIPA clients to engage the Registrar with. Especially clients who are not based in Windhoek,

as they can then receive first-hand information or feedback about their applications or

lodgements. Over the 12-month period we have observed a steady in increase in the

number of calls received. For the 2022/23 financial year, the call centre has received 31

946 incoming calls and has been able to answer 25 358, kindly see the graph below for

a monthly breakdown of the calls offered and answered. This amounts to 79.4% total

incoming calls that were answered.

Business and Intellectual Property Authority 93 ANNUAL REPORT 2022/2023

The graph also indicates the peak and non-peak seasons experienced at BIPA. Where 12.6.2.4 Customer Satisfaction Measures

from a call centre perspective, the peak period observed are June to September and then

January to March. For the achievement of an improved customer satisfaction rating, BIPA, via its Marketing

and Communications department conducts Customer Satisfaction Surveys to better

understand the needs of its clients. For the financial year under review, the department

executed 3 customer satisfaction surveys. The graphs below thus indicate the display of

CALL CENTRE PERFORMANCE the satisfaction surveys and the fluctuations across the various business periods.

2000 Overall Customer Satisfaction Overall Customer Satisfaction

VERY SATISFIED VERY SATISFIED

Apr-2 May- Jun-2 Jul-2 Aug- Sep- Oct-2 Nov- Dec- Jan-2 Feb- Mar- 19% 22%

2 22 2 2 22 22 2 22 22 3 23 23 32% SATISFIED

SATISFIED 39%

Calls Offered 2448 2980 4892 2127 2007 2385 2878 2827 2663 2296 2785 1658

21% 14% SOMEWHAT

Calls Answered 1999 2290 3329 1850 1782 2061 2158 2374 2290 2065 2115 1045 NOT SATISFIED SATISFIED

NOT SATISFIED

28% 25%

SOMEWHAT

SATISFIED

Call Centre Performance for FY 22/23

Overall Customer Satisfaction

12.6.2.3.3 In-Person Client Engagement

As a traditional means of client engagement, face-to-face engagements has been the

VERY SATISFIED

primary means through which clients submit their submissions to BIPA. The below graph

also illustrates that January to April is the BIPA peak period. This period is characterised by 26% SATISFIED

38%

the high number of annual duty and annual return payments and lodgements.

12% SOMEWHAT

24% SATISFIED

NOT SATISFIED

IN-PERSON CLIENT ENGAGEMENTS

1000 FY 2022/23 (Overall Customer Satisfaction from Q2 – Q4)

The initial survey conducted in July/August 2022 garnered an overall satisfaction score

Apr-2 May- Jun-2 Jul-2 Aug- Sep- Oct- Nov- Dec- Jan-2 Feb- Mar-

2 22 2 2 22 22 22 22 22 3 23 23

of 70%. The second survey conducted during the December/January period garnered a

Total Walk Ins 2101 1793 1887 1669 1311 1229 956

score of 48%. The final survey conducted during the March/April period garnered a score

951 345 2006 2331 1635

of 68%.

These three (3) measures thus provided an overall average of 62%. The pain points

identified were the long waiting periods, an online service, and the need for additional

In-person client engagement for FY 22/23 staff. The wins listed were staff friendliness and staff helpfulness.

Business and Intellectual Property Authority 94 ANNUAL REPORT 2022/2023

12.6.2.5 Client Service Plan Performance & Impact The Client Service Plan ensured the implementation execution of initiatives that sought

to strengthen the relationship between BIPA and its clients. These initiatives included

The Client Service Plan was introduced as a tool to ensure that activities focused on but were not limited to activities such as Stakeholder Engagements (both in-person and

improving our customer satisfaction are implemented. virtual), the introduction of quality assurance measures (i.e., Client Submission checklists)

and the development of a Client Service Multi-Channel Strategy. These initiatives thus

ensured that the Overall Strategic Stakeholder Confidence Pillar is achieved as far as

possible.

As the custodian of customer service and

all client interaction, the CMS department

successfully achieved an implementation rate

of 88% for the financial year under review.

Business and Intellectual Property Authority 95 ANNUAL REPORT 2022/2023

12.7. FINANCE AND ADMINISTRATION

Finance and Administration Team

12.7.1 Departmental Overview

Despite not being fully capacitated to the

The finance and administration function encompasses financial accounting, cost and

management accounting, procurement, facilities, and logistics. This team plays a pivotal

ideal scenario, the department consistently

role in providing essential financial management control, acting as an operational support performs above standard.

conduit and ensuring the ongoing operational sustainability of BIPA.

The department strategically plans and manages the organization’s financial resources,

assets, and procurement activities. Adhering to best practices, the department strives to

maintain BIPA’s liquidity and solvency, optimizing operations and procurements.

Business and Intellectual Property Authority 96 ANNUAL REPORT 2022/2023

Monitoring revenue, managing cash flows, controlling expenditures, implementing the a. Employee costs per year

procurement plan, collecting annual duties, and fostering a cohesive team of professionals

have contributed to BIPA’s growth and the achievement of positive EBITDA on an annual BIPA’s human capital investment has grown steadily over the past three years, reflecting

basis. strategic recruitment aligned with our organizational goals. Employee-related costs have

naturally increased alongside this expansion. However, BIPA is committed to responsible

The Finance and Administration department has adopted a self-reliance funding strategy, staffing practices and continuously monitors staff growth to ensure optimal resource

ensuring that BIPA is not dependent on government funding. The Authority generates its allocation, avoiding overstaffing scenarios.

own funds, deploying them to fulfill its mandate effectively.

12.7.2 Financial performance for the FY 2022/23 Employee Costs

71,234,603

BIPA’s financial performance maintains a positive upward trend, showcasing another year 80,000,000 63,486,637

54,982,924

of above-average results in FY2022/23, consistent with previous financial periods. Notable 60,000,000 44,017,003 48,178,151

aspects of this performance include substantial growth in actual revenue, diminished

40,000,000

reliance on government funding, a positive EBITDA, a robust liquidity position, and

20,000,000

sustained solvency.

The annual revenue growth for BIPA averages an impressive 15%, a commendable feat 18/19 19/20 20/21 21/22 22/23

for the Authority. Management has successfully achieved an 18% return on investments,

Employee costs

marking a notable accomplishment.

Despite the challenges posed by the recent recession and the prolonged impact of

COVID–19, BIPA’s annual budget continues to expand, demonstrating resilience and

adaptability in the face of external adversities. The below graph shows the average employee cost per employee.

Annual budget per year (Capex vs Opex) Average Cost per Employee

The annual budget for the past 5 years has gradually been increasing and this has made 700,000

598,610

it possible for BIPA to expand its operations and appropriate the necessary funding to 600,000 547,299

468,266 467,749 478,112

strategic and revenue making projects. 500,000

400,000

300,000

200,000

100,000

87,969,727 -

98,769,304 91,503,844 102,619,483

18/19 19/20 20/21 21/22 22/23

82,189,481 84,059,363 91,235,378 99,093,355

87,753,593

77,008,512

31,550,000 35,094,076 b. Revenue per year

23,440,000 23,573,000

14,180,517

Notably, the staff-to-revenue ratio (or the number of employees per unit of revenue

18/19 19/20 20/21 21/22 22/23 generated) on average showed improvement. This indicates positive strides in resource

management, suggesting that BIPA is achieving more with the talent it has on board.

Revenue OPEX CAPEX

Business and Intellectual Property Authority 97 ANNUAL REPORT 2022/2023

i. Revenue streams.

Average Revenue per employee BIPA derives its revenue through diverse efforts across various departments, with a

comprehensive reporting system established to monitor and account for these income

1,000,000 881,528 908,083 streams. This approach ensures transparency and clarity in understanding the financial

855,245

809,701

contributions from each department. The primary driver of BIPA’s financial success is the

800,000 677,389 collection of annual duties, serving as the authority’s main source of revenue. This revenue

600,000 stream plays a pivotal role in sustaining BIPA’s financial health and supporting its operational

endeavors.

400,000

Apart from annual duties, BIPA strategically cultivates additional revenue streams through

200,000 the concerted efforts of its various departments such as business registration, business

amendments and intellectual property registration. These diversified sources contribute to

the overall financial resilience of BIPA.

18/19 19/20 20/21 21/22 22/23

The table below provides the details.

With improved revenue figure on an annual basis, the data below indicates an increase in

revenue over the years, with an exception to the 2021/22 financial year. BIPA remains agile Financial Year 19/20 20/21 21/22 22/23

in its revenue collection to ensure core revenue areas are strengthened and grown for BIPA Annual Duties 46,152,840 64,018,118 75,640,029 83,026,585

to not only remain a going concern, but equally enhance its investments for future projects.

Registration of Businesses 4,839,232 4,865,802 4,119,769 4,069,310

Intellectual Property - Local 4,370,079 3,268,409 4,729,740 3,198,659

Revenue Table.

Amendments 840,976 502,728 1,008,098 1,252,385

Others 4,528,509 2,455,125 2,754,831 6,518,113

120,000,000 108,061,906 Intellectual Property - Foreign 2,399,288 7,104,014 7,134,207 9,321,854

101,375,727

93,925,343 GRN Grants 21,500,000 17,700,000 - 675,000

100,000,000 88,090,241

80,000,000

63,674,550

60,000,000 ii. Revenue from ARIPO/WIPO

40,000,000

BIPA’s revenue streams, particularly those stemming from its memberships with the

African Regional Intellectual Property Organisation (ARIPO) and the World Intellectual

20,000,000 Property Organisation (WIPO), have demonstrated notable growth, primarily attributed

to the escalating number of intellectual property (IP) designations to Namibia. The ARIPO

revenue stream exhibited resilience, maintaining a commendable performance even during

18/19 19/20 20/21 21/22 22/23 the challenging post-COVID 19 period. Despite the global disruptions, the ARIPO-related

revenue streams continued to contribute significantly to BIPA’s financial well-being.

Conversely, the WIPO revenue stream encountered a temporary stagnation in growth in

2022. However, a noteworthy turnaround ensued, marked by a remarkable 45% increase

in subsequent period.

Business and Intellectual Property Authority 98 ANNUAL REPORT 2022/2023

The strategic engagement with international IP organizations proves pivotal in augmenting D. Budget execution rate per year

BIPA’s revenue diversity and fortifying its financial resilience in the face of evolving global

dynamics. BIPA has demonstrated a remarkable financial performance by consistently executing the

revenue budget at an impressive average of 104%. This signifies that, on average, BIPA

has surpassed its anticipated revenues, showcasing a proactive and effective financial

management approach. This accomplishment reflects BIPA’s commitment to achieving

ARIPO and WIPO Revenues and even surpassing its financial goals, contributing to its overall financial stability and

5,306,637 success.

6,000,000

5,000,000 4,253,800 4,361,290

4,015,217

4,000,000 3,092,114 2,850,214

3,000,000

2,772,917

ARIPO Budget Utilisation - Revenue

2,000,000 2,766,991 WIPO 120000000 160%

1,000,000 135% 140%

100000000

115% 120%

2020 2021 2022 2023 80000000 103% 105% 100%

89%

60000000 78% 80%

60%

40000000

40%

20000000

20%

2018 2019 20120 2021 2022 2023

C. Annual subsidy per year /Government grants 0 0%

1 2 3 4 5 6

The annual government subsidies to BIPA have experienced a notable decline since its

Year Budget Actual % Budget Utilisation

establishment, particularly when compared to the levels observed in 2020 and subsequent

years. In the year 2022, BIPA did not receive any financial support from the government,

and a minimal amount of funding was allocated in 2023. In response to this reduced

government assistance, BIPA took on the responsibility of self-funding its programmes In the past 4 years, the expenditure budget has been managed well. Actual expenditures

from 2022 to 2023, with a predominant focus on meeting operational needs. have been below the budget. In FY2022/23, a Work-in-Progress asset write-off of N$ 12.8

million led to higher expenditure that the budget.

GRN SUBSIDY

BUDGET UTILISATION

30,000,000 21,500,000

17,700,000 Budgeted Expenses Actual Expenses Budget Utilisation

114,395,378

20,000,000

99,093,355

87,753,593 91,235,378 88,365,327

10,000,000

84,059,363

675,000

77,008,512 76,402,755

71,074,807

63,612,614

2020 2021 2022 2023

83% 85% 87% 97% 115%

18/19 19/20 20/21 21/22 22/23

Business and Intellectual Property Authority 99 ANNUAL REPORT 2022/2023

12.7.3 Annual Duty Revenue Statistics The implementation of the Enterprise Resource Planning System (ERP) is poised to

significantly influence BIPA’s operations, primarily by enhancing operational efficiencies

a. Annual duties are payable by both companies and close corporations in terms of and minimizing redundancies. Furthermore, the ERP system is expected to contribute to

the relevant legislative provisions. For the period under review, 14 681 companies improved revenue collections and the establishment of stringent internal controls. This

made the statutory payment towards their annual duties, while 40 181 close integration will result in enhanced financial reporting capabilities for BIPA.

corporations paid for the specific year. Additional revenue has also been accounted

for those entities that paid payment for annual duties for previous years, and these

account for arrears paid as reflected in the table below. 12.7.5 Procurement:

a. Approved Procurement Plan 2022/23

Type of Entity Amount N$ No. of Entities paid up BIPA had an approved procurement plan for the year. The total value of the

Companies 69,391,040 14,681 procurement plan for FY 2022/23 was N$ 48,447,766.

Close Corporations 9,636,729 40,181

b. Deviations from the procurement plan

Arrears paid 3,998,492 No deviation from the procurement plan was undertaken.

Total 79,027,769 54,862

c. Stats on canceled bids

No bids were canceled.

b. Outstanding annual duties for 2012 – 2022

d. Stats on CAPEX vs OPEX Procurement

The below table reflects the amount due to BIPA on outstanding annual duties for the Only 20% of the overall procurement plan was executed. CAPEX was executed

2012-2022. by 6%.

Outstanding Annual Duties (2012 – 2022) e. Stats on non-compliance

None

Principal Amounts 98,892,000

Penalties 275,287,500 f. Total procurement figure for 2022/23

Total 374,179,500

12.7.4 Projects undertaken/executed by/under F&A for FY2022/23

a. Project title: ERP Project

b. Project budget: N$ 4.79 million

c. Project deliverables: ERP System

d. Project timeline: 4 years

e. Project status: Development

f. Impact of ERP project on the organization

Business and Intellectual Property Authority 100 ANNUAL REPORT 2022/2023

FY2022/23 Procurement Plan Implementation

Item Budget Q1 - Actual Q2 - Actual Q3 - Actual Q4 - Actual Totals Budget Balance

Goods 37,154,380 380,806 1,191,225 183,690 424,028 2,179,750 34,974,630

Works 371,752 137,866 51,519 9,220 11,188 209,793 161,959

Consultancy 5,553,023 1,353,226 308,889 615,384 537,552 2,815,052 2,737,971

Non-consultancy 5,795,308 863,712 1,084,316 1,250,683 1,367,498 4,566,210 1,229,098

Totals 48,874,463 2,735,610 2,635,949 2,058,978 2,340,267 9,770,804 39,103,659

Business and Intellectual Property Authority 101 ANNUAL REPORT 2022/2023

13 ANNUAL FINANCIAL

STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

"Businesses can turn compliance demands into

opportunities for innovation and resilience."

Business and Intellectual Property Authority 102 ANNUAL REPORT 2022/2023

Business and Intellectual Property Authority 103 ANNUAL REPORT 2022/2023

Office of the Auditor-General General Information

Country of Incorporation The Republic of Namibia

To run a legal system for business

Nature of business and principal activities and intellectual property registration,

protection and promotion thereof

Immanuel !Hanabeb (Board

Directorate

Chairperson)

Sara Katiti (Deputy Chairperson)

Justin Strauss

Ashley Tjipitua

Nancy Watyoka

Hilka Alberto

Julius Haikali

Registered Office 3 Ruhr Street Northern Industrial Area

Windhoek

Namibia

Postal Address P.O Box 185

Windhoek

Namibia

Bankers Bank Windhoek Limited

First National Bank Namibia

Nedbank Namibia Limited

Auditors PricewaterhouseCoopers

Registered Accountants and Auditors

Chartered Accountants (Namibia)

Secretary Vacant

Ministry of Industrialization and Trade

Line Ministry

(“MIT”)

Business and Intellectual Property Authority 104 ANNUAL REPORT 2022/2023

Index

Page

Director’s Responsibilities and Approval 106

Independent Auditor’s Report 107- 108

Directors Report 109 - 111

Statement of Financial Position 112

Statement of Surplus or Deficit and Other Comprehensive Income 113

Statement of Changes in Equity 114

Statement of Cash Flows 115

Notes to the Annual Financial Statements 116 - 148

The following supplementary information does not form part of the annual financial statements and is unaudited:

Detailed Statement of Surplus or Deficit and Other Comprehensive Income 149 - 151

Business and Intellectual Property Authority 105 ANNUAL REPORT 2022/2023

Director’s Responsibilities and Approval

The Directors are required by the BIPA Act, 2016, (Act No.8 of 2016), to maintain However, any system of internal financial control can provide only reasonable, and not

adequate accounting records and are responsible for the content and integrity of absolute, assurance against material misstatement or loss.

the annual financial statements and related financial information included in this

report. It is their responsibility to ensure that the annual financial statements fairly The directors have reviewed the Authority’s cash flow forecast for the year to 31 March

present the state of affairs of the company as at the end of the financial year and 2023 and, in light of this review and the current financial position, they are satisfied

the results of its operations and cash flows for the period then ended, in conformity that the Authority has or had access to adequate resources to continue in operational

with the International Financial Reporting Standards (“IFRS”). The external auditors existence for the foreseeable future.

are engaged to express an independent opinion on the annual financial statements.

The external Auditors are responsible for independently auditing and reporting on the

The annual financial statements are prepared in accordance with the International Authority’s annual financial statements. The annual financial statements have been

Financial Reporting Standards (“IFRS”) and are based upon appropriate accounting policies examined by the Authority’s external Auditors and their report is presented on page

consistently applied and supported by reasonable and prudent judgements and estimates. 107 to 108.

The Directors acknowledge that they are ultimately responsible for the system of internal The annual financial statements set out on pages 109 to 148, which have been prepared

financial controls established by the Authority and place considerable importance on the going concern basis, were approved by the Board of Directors and were signed

on maintaining a strong control environment. To enable the Directors to meet these on its behalf by:

responsibilities, the Board of Directors sets standards for internal control aimed at

reducing the risk of error or loss in a cost effective manner. The standards include

the proper delegation of responsibilities within a clearly defined framework, effective

accounting procedures and adequate segregation of duties to ensure an acceptable

level of risk.

_________________________________________ ___________________________________________

These controls are monitored throughout the company and all employees are

required to maintain the highest ethical standards in ensuring the company’s Immanuel !Hanabeb Sara Katiti (Chairperson:

business is conducted in a manner that, in all reasonable circumstances is above (Board Chairperson) Finance, Risk and Audit Committee)

reproach. The focus of risk management in the Authority is based on identifying,

assessing, managing and monitoring all known forms of risk. While operating

risk cannot be fully eliminated, the Authority endeavours to minimise it by Windhoek

ensuring that appropriate infrastructure, controls, systems and ethical behaviour

are applied and managed within predetermined procedures and constraints.

The Directors are of the opinion, based on the information and explanations given by Date:_________________________________ Date:______________________________________

management, that the system of internal control provides reasonable assurance that the

financial records may be relied on for the preparation of the annual financial statements.

Business and Intellectual Property Authority 106 ANNUAL REPORT 2022/2023

Independent auditor’s report

To the Members of Business and Intellectual Property Authority Other information

The directors are responsible for the other information. The other information comprises

Our opinion the information included in the Business and Intellectual Property Authority Annual

In our opinion, the financial statements present fairly, in all material respects, the financial Financial Statements for the year ended 31 March 2023. Other information does not

position of Business and Intellectual Property Authority (the Authority) as at 31 March include the Annual Financial Statements and our auditor’s report thereon.

2023, and its financial performance and cash flows for the year then ended in accordance

with International Financial Reporting Standards (“IFRS”) and the requirements of the Our opinion on the Annual Financial Statements does not cover the other information

BIPA Act, 2016 (Act No.8 of 2016). and we do not express an audit opinion or any form of assurance conclusion thereon.

What we have audited

Business and Intellectual Property Authority’s annual financial statements set out on In connection with our audit of the financial statements, our responsibility is to read

pages 7 to 33 comprise: the other information identified above and, in doing so, consider whether the other

• The directors report for the year ended 31 March 2023; information is materially inconsistent with the financial statements or our knowledge

• the statement of financial position as at 31 March 2023; obtained in the audit, or otherwise appears to be materially misstated. If, based on the

• the statement of surplus or deficit and other comprehensive income for the year work we have performed, we conclude that there is a material misstatement of this

then ended; other information, we are required to report that fact. We have nothing to report in this

• the statement of changes in equity for the year then ended; regard.

• the statement of cash flows for the year then ended; and

• the notes to the financial statements, which include a summary of significant Responsibilities of the directors for the financial statements

accounting policies. The directors are responsible for the preparation and fair presentation of the financial

statements in accordance with International Financial Reporting Standards and the

Basis of opinion requirements of the BIPA Act, 2016 (Act No. 8 of 2016), and for such internal control as

We conducted our audit in accordance with International Standards on Auditing (ISAs). the directors determine is necessary to enable the preparation of financial statements

Our responsibilities under those standards are further described in the Auditor’s that are free from material misstatement, whether due to fraud or error.

responsibilities for the audit of the financial statements section of our report.

In preparing the financial statements, the directors are responsible for assessing the

We believe that the audit evidence we have obtained is sufficient and appropriate to Authority’s ability to continue as a going concern, disclosing, as applicable, matters

provide a basis for unqualified opinion. related to going concern and using the going concern basis of accounting unless the

directors either intend to liquidate the Authority’s or to cease operations or have no

Independence realistic alternative but to do so.

We are independent of the Authority in accordance with the International Ethics

Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A

& B) and other independence requirements applicable to performing audits of financial

statements in Namibia. We have fulfilled our other ethical responsibilities in accordance

with this and in accordance with other ethical requirements applicable to performing

audits in Namibia.

Business and Intellectual Property Authority 107 ANNUAL REPORT 2022/2023

Independent auditor’s report (Continued)

Auditor’s responsibilities for the audit of the financial statements If we conclude that a material uncertainty exists, we are required to draw

Our objectives are to obtain reasonable assurance about whether the financial attention in our auditor’s report to the related disclosures in the financial

statements as a whole are free from material misstatement, whether due to fraud or statements or, if such disclosures are inadequate, to modify our opinion. Our

error, and to issue an auditor’s report that includes our opinion. Reasonable assurance conclusions are based on the audit evidence obtained up to the date of our

is a high level of assurance, but is not a guarantee that an audit conducted in accordance auditor’s report. However, future events or conditions may cause the company

with ISAs will always detect a material misstatement when it exists. Misstatements can to cease to continue as a going concern.

arise from fraud or error and are considered material if, individually or in aggregate, they

could reasonably be expected to influence the economic decisions of users taken on the • Evaluate the overall presentation, structure and content of the financial

basis of these financial statements. statements, including the disclosures, and whether the financial statements

represent the underlying transactions and events in a manner that achieves fair

As part of an audit in accordance with ISAs, we exercise professional judgement and presentation.

maintain professional scepticism throughout the audit. We also:

We communicate with the directors regarding, among other matters, the planned scope

• Identify and assess the risks of material misstatement of the financial statements, and timing of the audit and significant audit findings, including any significant deficiencies

whether due to fraud or error, design and perform audit procedures responsive in internal control that we identify during the audit.

to those risks, and obtain audit evidence that is sufficient and appropriate to

provide a basis for our opinion. The risk of not detecting a material misstatement

resulting from fraud is higher than for one resulting from error, as fraud may

involve collusion, forgery, intentional, omissions, misrepresentations, or the

override of internal control. ____________________________________________

PricewaterhouseCoopers

• Obtain an understanding of internal control relevant to the audit in order to Registered Accountants and Auditors

design audit procedures that are appropriate in the circumstances, but not for Chartered Accountants and Auditors

the purpose of expressing an opinion on the effectiveness of the Authority’s

internal control. Per: Samuel N Ndahangwapo

• Evaluate the appropriateness of accounting policies used and the reasonableness Partner

of accounting estimates and related disclosures made by the directors.

Windhoek, Namibia

• Conclude on the appropriateness of the directors use of the going concern basis

of accounting and based on the audit evidence obtained, whether a material Date: 06/02/24

uncertainty exists related to events or conditions that may cast significant doubt

on the company’s ability to continue as a going concern.

Business and Intellectual Property Authority 108 ANNUAL REPORT 2022/2023

Director’s Report

The directors have pleasure in submitting their report on the annual financial statements of Business and Intellectual Property Authority for the year ended 31 March 2023.

1. NATURE OF BUSINESS

Business and Intellectual Property Authority was incorporated in Namibia with interests in running the legal system for business and intellectual property registration, protection and

promotion thereof. The Authority operates in Namibia.

2. REVIEW OF FINANCIAL RESULTS AND ACTIVITIES

The annual financial statements have been prepared in accordance with the International Financial Reporting Standards (“IFRS”). The accounting policies have been applied

consistently compared to the prior year.

Full details of the financial position, results of operations and cash flows of the company are set out in these annual financial statements.

3. DIRECTORATE

The directors in office at the date of this report are as follows:

Directors Nationality Status

Immanuel !Hanabeb Namibian Appointed 1 October 2021

Sara Katiti Namibian Appointed 1 October 2021

Justin Strauss Namibian Appointed 1 October 2021

Ashley Tjipitua Namibian Appointed 1 October 2021

Nancy Watyoka Namibian Appointed 1 October 2021

Hilka Alberto Namibian Appointed 1 October 2021

Julius Haikali Namibian Appointed 1 October 2021

Business and Intellectual Property Authority 109 ANNUAL REPORT 2022/2023

4. BOARD AND SUB-COMMITTEE MEETINGS

Human Resources Strategy, Projects &

Board and Special Board Finance, Risk and Audit Governance, Legal and

Board of Directors and Remuneration Procurement Committee

Meeting Committee (FRAC) Ethics Committee (GLEC)

Committee (HRRC) (SPPC)

Immanuel !Hanabeb 7 4 5 1

Sara Katiti 6 5 5

Justin Strauss 7 4 4

Ashley Tjipitua 5 4 4

Nancy Watyoka 7 5 5 5

Hilka Alberto 5 5 5 4

Julius Haikali 6 5 4 5

5. EVENTS AFTER THE REPORTING PERIOD The going concern presumes that funds will be available to finance future operations

The directors are aware of material events which occurred after the reporting date and and that the realization of assets and settlement of liabilities, contingent obligations, and

up to the date of this report as follows: commitments will occur in the ordinary course of business.

5.1. COVID-19 Pandemic 7. AUDITORS

The impact of COVID-19 has been an evolving situation since the late 2019. Given the PricewaterhouseCoopers continued in office as the auditor for the Authority for the

information available at 31 March 2023, COVID-19 would be unlikely to have had a period ended 31 March 2023.

material effect on the recognition and measurement of assets and liabilities.

8. SECRETARY

The Authority’s total expenditure on COVID-19 expenses during the financial year The Secretary of the Authority is the Chief Legal and Secretarial Services. For the period

amounted to N$ 0.00, (2022: N$154,185.00). ended 31 March 2023, the position of Chief Legal and Secretarial Services is still vacant.

6. GOING CONCERN Business address 3 Ruhr Street

In preparing the financial statements, the directors are responsible for assessing the Northern Industrial Area

Authority’s ability to continue as a going concern, disclosing, as applicable, matters Windhoek

related to going concern, and using the going concern basis of accounting unless the Namibia

directors or shareholder (Government) either intend to liquidate the Authority or to

cease operations or have no realistic alternative but to do so.

Business and Intellectual Property Authority 110 ANNUAL REPORT 2022/2023

Director’s Report (Continued)

9. DIRECTORS’ INTEREST AND CONTRACTS

During the financial year, no contracts were entered into with the directors or officers of amount of N$ 18, 000, 000. BIPA is joint to the proceedings as the third applicant

the Authority, the directors or officers do not hold any interest in the Authority. claiming back N$2,160,000. All applicants are claiming from the defendants. The matter

has been in litigation since 2018 and the legal process has proven to be protracted.

10. KATUTURA OFFICE BUILDING

Katutura Office Building situated on Erf 2780, Shire Street Wanaheda has not As such, for prudential financial reporting the Board resolved to impair the transfer duties

been included in the financial statements as its ownership is the subject of ongoing paid of N$ 2,160,000. The trial relating to the matter above commences in February 2024

litigation before the High Court of Namibia. The matter is brought before the Civil and and in the event that BIPA’s claim is successful and the amount is received, the impairment

a Criminal (in terms of the POCA) court and the State represented by the Minister of made will be reversed and recognized as income in the statement of surplus or deficit

Industrialization, Minister of Finance and Public Enterprises, are claiming back an and other comprehensive income.

Business and Intellectual Property Authority 111 ANNUAL REPORT 2022/2023

Statement of Financial Position as at 31 March 2023

2023 2022 2023 2022

Note(s) N$ N$ Note(s) N$ N$

ASSETS EQUITY AND LIABILITIES

Non-current assets Equity 74,272,974 80,361,295

Property, plant and equipment 4 34,409,958 34,328,461 Contribution 11 34,491,766 34,491,766

Intangible assets 5 3,283,555 4,858,699 Accumulated Fund 39,781,208 45,869,529

Right-of-use assets 6 4,720,905 7,233,450

Non- Current liabilities 4,387,778 7,447,758

Total non-current assets 42,414,418 46,420,610 Deferred income 12 2,319,315 2,551,246

Lease liabilities 6 2,068,463 4,896,512

Current assets

Trade and other receivables 7 8,167,059 4,969,142 Current liabilities 24,971,659 17,480,879

Prepayments 8 332,002 191,667 Trade and other payables 13 17,557,603 14,698,729

Other financial assets 9 37,391,421 31,678,807 Deferred income 12 4,202,572 231,931

Cash and cash equivalents 10 28,170,040 22,029,706 Lease liabilities 6 3,211,484 2,550,219

Total current assets 74,060,522 58,869,322 Total Liabilities 29,359,437 24,928,637

Total assets 116,474,940 105,289,932 Total equity and liabilities 103,632,411 105,289,932

Business and Intellectual Property Authority 112 ANNUAL REPORT 2022/2023

Statement of Surplus or Deficit and Other Comprehensive Income for the year ended 31 March 2023

2023 2022

Note(s) N$ N$

Revenue 14 91,833,175 84,356,809

Other income 15 12,568,698 7,802,937

Operating expenses (113,737,285) (87,729,223)

Expected credit losses 7 (8,164) (4,779)

Loss/gain on exchange differences 909,223 (338,091)

Operating surplus/ (deficit) 16 (8,434,353) 4,087,653

Interest received 19 2,750,810 1,765,597

Finance charges for lease liabilities 19 (649,929) (293,234)

Surplus/ (Deficit) for the year (6,333,473) 5,560,016

Total comprehensive income/(loss) (6,333,473) 5,560,016

Other comprehensive income

Items that will not be reclassified to surplus or deficit

Revaluation surplus on Land 183,850

Total comprehensive income/(loss) for the period (6,149,623) 5,560,016

Business and Intellectual Property Authority 113 ANNUAL REPORT 2022/2023

Statement of Changes in Equity for the year ended 31 March 2023

Accumulated

Contribution Total equity

Fund

N$ N$ N$

Balance at 31 March 2021 34,491,766 40,214,497 74,706,263

Opening balance adjustments - 95,016 95,016

34,491,766 40,309,513 74,801,279

Surplus for the year - 5,560,016 5,560,016

Other comprehensive income - - -

Total comprehensive income for the year - 5,560,016 5,560,016

Balance at 31 March 2022 34,491,766 45,869,529 80,361,295

Opening balance adjustments 61,302 61,302

34,491,766 45,930,831 80,422,597

Deficit for the year - (6,333,473) (6,333,473)

Other comprehensive income - 183,850 183,850

Total comprehensive loss for the year - (6,149,623) (6,149,623)

Balance at 31 March 2023 34,491,766 39,781,208 74,272,974

Business and Intellectual Property Authority 114 ANNUAL REPORT 2022/2023

Statement of Cash Flows for the year ended 31 March 2023

2023 2022 2023 2022

Note(s) N$ N$ Note(s) N$ N$

Cash flows from operating activities Cash flows from financing activities

Cash used in operations 21 7,750,636 8,304,487 Bank of Namibia grant 12 5,591,045 -

GIZ Donation 25 182,155 -

Interest received 19 838,196 504,990 Principal elements of lease payments 6 (3,099,512) (2,869,919)

Net cash from operating activities 8,588,832 8,809,477 2,673,688 (2,869,919)

Cash flows from investing activities Net increase/(decrease) in cash and 6,140,334 3,722,545

cash equivalents

Purchase of property, plant and 4 (1,568,137) (1,253,805)

equipment Cash and cash equivalents at the 22,029,706 18,307,161

beginning of the year

Purchase of intangible assets 5 - (963,208)

Cash and cash equivalents 10 28,170,040 22,029,706

Proceed on sale of property, plant and 4 245,950 - at end of year

equipment

Purchase of other financial assets 9 (3,800,000) -

(5,122,187) (2,217,013)

Business and Intellectual Property Authority 115 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

1. SIGNIFICANT ACCOUNTING POLICIES 1.2.1.1.2. Deferred income

Donations received in the form of fixed assets other than land are recognized as deferred

The principal accounting policies applied in the preparation of these financial statements income and written off over the useful lives of the asset.

are set out below:

1.2.1.1.3. Useful lives of assets

1.1 Presentation of Annual Financial Statements The assets are classified under property, plant and equipment and the useful lives are

The annual financial statements have been prepared in accordance with the International determined as set out in note 1.3. The useful lives of the property, plant and equipment

Financial Reporting Standards (“IFRS”) and the International Financial Reporting is in line with the industry norm.

Interpretation Committee (“IFRIC”) Interpretations issued and effective at the time

of preparing these financial statement. These annual financial statements have been 1.2.1.1.4. Trade receivables

prepared on the historical cost basis, except for Land and Building included in property, The Authority assesses its trade receivables for impairment at the end of each reporting

plant and equipment which is measured at fair value and incorporate the principal period. In determining whether an impairment loss should be recorded in the surplus or

accounting policies set out below, and are presented in Namibia Dollars. deficit, the Authority makes judgement as to whether there is observable data indicating

a measurable decrease in the estimated future cash flows from the financial asset.

1.2. Significant judgements and sources of estimation uncertainty

The preparation of financial statements in conformity with IFRS requires management, The impairment (or loss allowance) for trade receivables is calculated on a portfolio basis,

from time to time to make judgements, estimates and assumption that affect the except for individually significant trade receivables, which are assessed separately. The

application of policies and reported amounts of assets, liabilities, income and expenses. impairment test on the portfolio is based on historical loss ratios, adjusted for national

These estimates and associated assumptions are based on experience and various other and industry-specific economic conditions and other indicators present at the reporting

factors that are believed to be reasonable and under circumstances. Actual results may period that correlate with defaults on the portfolio. These annual loss ratios are applied

differ from these estimates. The estimates and underlying assumptions are reviewed to loan balances in the portfolio and scaled to the estimated loss emergence period.

on an ongoing basis. Revisions to accounting estimates are recognised in the period in

which the estimates are revised and in any future periods affected. 1.2.1.1.5. Impairment of non-financial assets

The Authority reviews and tests the carrying value of assets when events or changes

1.2.1. Critical judgements in applying accounting policies in circumstances suggests that the carrying amount may not be recoverable. When

such indicators exists, management determine the recoverable amount by performing

1.2.1.1. Key sources of estimation uncertainty value in use and fair value calculations. These calculations require the use of estimates

Management did make critical judgements in the application of accounting policies, apart and assumptions. When it is not possible to determine the recoverable amount for an

from those involving estimation, which would significantly affect the financial statements individual asset, management assesses the recoverable amount for the cash generating

and are outlined as follows: unit to which the asset belongs.

Revenue from annual duties, penalties and fines are non-exchange transactions and 1.2.1.1.6. Residual values and useful lives of property, plant and equipment

accounted for using the policy developed by the Authority. All non-exchange transactions The residual value, useful life and depreciation method of each asset is reviewed and

are recognised in surplus or deficit to the extent they are assets and it is probable that adjusted if appropriate at the end of each reporting period. If the expectations differ

the future economic benefits or service potential associated with the asset will flow to from previous estimates, the change is accounted as a change in accounting estimate.

the entity, and the fair value of the asset can be measured reliably.

Business and Intellectual Property Authority 116 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

1.2. Significant judgements and sources of estimation uncertainty (continued) 1.3. Property, plant and equipment

Property, plant and equipment is stated at historical cost less accumulated depreciation.

1.2.1.1.7. Leases Historical cost includes expenditure that is directly attributable to the acquisition of the

The Authority exercises judgement in classifying leases in line with IFRS 16 (as set out in items and impairment losses.

the note 1.7.)

Cost include costs incurred initially to acquire or construct an item of property, plant and

1.2.1.1.8. Provisions equipment and costs incurred subsequently to add to, replace part of, or service it. If a

Provisions are inherently based on assumptions and estimates using the best information replacement cost is recognised in the carrying amount of an item of property, plant and

available. Additional disclosure of these estimates of provisions are included in note equipment, the carrying amount of the replaced part is derecognised.

1.11.

Depreciation is provided using the straight-line method to write down the cost, less

estimated residual value over the useful life of the property, plant and equipment as

follows:

Item Depreciation Method Average useful life

Buildings Straight-line basis 50 years

Furniture and fixtures Straight-line basis 5-10 years

Motor Vehicles Straight-line basis 2-5 years

Office equipment Straight-line basis 3 years

IT equipment Straight-line basis 3 years

Leasehold improvements Straight-line basis 8-10 years

Other Fixed Assets Straight-line basis 2-10 years

Server Straight-line basis 15 years

Right-of-use assets Straight-line basis 3 years

Capital work in progress Not depreciated Not depreciated

Business and Intellectual Property Authority 117 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

1.3. Property, plant and equipment (Continued) Intangible assets are carried at cost less any accumulated amortisation and any

impairment losses.

If the major components of an item of property, plant and equipment have significantly

different patterns of consumption of economic benefits, the cost of the asset is allocated An intangible asset is regarded as having an indefinite useful life when, based on all

to its major components and each such component is depreciated separately over its relevant factors, there is no foreseeable limit to the period over which the asset is

useful life. expected to generate net cash inflows. Amortisation is not provided for the intangible

assets, but they are tested for impairment annually, and whenever there is an indication

Land and Building is being revalued at fair value at the date of revaluation less subsequent that the asset may be impaired. For all other intangible assets, amortisation is provided

depreciation and impairment subsequent measurent.Land is not depreciated. on a straight-line basis over their useful life.

The residual value, depreciation method and useful life of each asset are reviewed only The amortisation period and the amortisation method for intangible assets are reviewed

where there is an indication that there has been a significant change from the previous every period-end.

estimate. Reassessing the useful life of an intangible asset with finite useful life after it was classified

as indefinite is an indicator that the asset may be impaired. As a result the asset may be

The depreciation charge for each period is recognised in surplus or deficit unless it is tested for impairment and the remaining carrying amount is amortised over its useful

included in the carrying amount of another asset. life.

The gain or loss arising from the derecognition of an item of property, plant and Amortisation is provided to write down the intangible assets, on a straight-line basis, to

equipment is included in profit or loss when the item is derecognised. The gain or loss their residual value as follows:

arising from the derecognition of an item of property, plant and equipment is determined

as the difference between the net disposal proceeds, if any and the carrying amount of Item Amortisation Method Useful life

the item.

Computer software Straight-line 5 Years

Capital work in progress is measured at cost less accumulated impairment.

1.4. Intangible assets 1.5. Financial Instruments

An intangible asset is recognised when: A financial instrument is any contract that gives rise to both a financial asset of one entity

• it is probable that the expected future economic benefits that are attributable to and a financial liability or equity instrument of another entity.

the asset will flow to the entity; and

• the cost of the asset can be measured reliably

Intangible assets are initially recognised at cost.

Business and Intellectual Property Authority 118 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

1.5. Financial Instruments (Continued) 1.5.5. Trade and other payables - Classification, Recognition and measurement

1.5.1. Classification and measurement as cash and cash equivalents Trade and other payables are classified as current liabilities and subsequently measured

at amortised cost. Trade and other payables are recognised when the Authority becomes

Cash and cash equivalents includes cash on hand, deposits held at call with financial a party to a contractual provisions, and are measured at initial recognition, at fair value

institutions, other short-term, highly liquid investments with original maturities of three plus transactional costs, if any, and are subsequently measured at amortised cost.

months or less that are readily convertible to known amounts of cash and which are

subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts

are shown within borrowings in current liabilities in the balance sheet. The cash and cash Trade and other payables expose the Authority to liquidity risk and possible to interest

equivalents are therefore subsequently measured at amortised cost. Gains and losses risk.

are set out in note 1.5.7

1.5.6. Derecognition of financial assets and liabilities

1.5.2. Classification and measurement as other financial assets Financial assets are derecognised when the rights to receive cash flows from the

Other financial assets consist of short-term investments invested in unit trusts. These financial assets have expired or have been transferred and the Authority has transferred

short-term investments can be called at any given time. Financial instruments are substantially all the risks and rewards of ownership.

initially measured at fair value, with changes in fair value recognised in profit or loss, as

they arise, unless restrictive criteria are met for classifying and measuring the asset at The Authority shall derecognise a financial liability (or a part of a financial liability) from

either amortised cost or fair value through other comprehensive income, plus or minus its statement of financial position when, and only when, it is extinguished. This happens

transaction costs, that are directly attributable to the acquisition or issue of the financial when the obligation specified in the contract is discharged or cancelled or expires.

asset or a financial liability. Gains or losses are set out in note 1.5.7.

1.5.7. Determination of gains or losses

1.5.3. Classification, recognition and measurement as trade and other Gains or losses are determined as the difference between the expected cash flows at the

receivables beginning of the period and the actual cash flows at the end of the period.

Trade receivables are amounts due from customers for goods sold or services

performed in the ordinary course of business. They are generally due for settlement 1.6. Prepayments

within 30 days and therefore are all classified as current assets. Trade receivables are Prepayments relate to the Client Notification System. The system notify the Authority’s

recognised initially at the amount of consideration that is unconditional unless they clients when service is delivered. The Authority subscribes on an annual basis to the

contain significant financing components, when they are recognised at fair value. The system. Prepayments are measured at amortised cost and are derecognised when the

Authority holds the trade receivables with the objective to collect the contractual cash services to which the prepayment relate have been received.

flows and therefore measures them subsequently at amortised cost using the effective

interest method.

1.5.4. Impairment of financial assets

At each reporting date, the Authority assesses all financial assets, other than those at fair

value through profit or loss, to determine whether there is an objective evidence that a

financial asset or group of financial assets has been impaired.

Business and Intellectual Property Authority 119 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

1.7. Leases - IFRS 16 • the exercise price of a purchase option if the leasee is reasonably certain to

Leases are recognized, measured and presented in line with IFRS 16 ‘Leases’. exercise that option; and

• payments of penalties for terminating the lease, if the lease term reflects the

The Authority recognises a right-of-use asset and lease liability at the commencement leasee exercising an option to terminate the lease term.

of the contract for all leases conveying the right to control the use of an identified

assets for a period in time. The commencement date is the date on which the lessor The lease payments exclude variable elements which are dependent on external factors.

makes an underlying asset available for use by a lessee. Variable lease payments not included in the initial measurement of the lease liability are

recognised directly in surplus or deficit.

The right-of-use assets are initially measured at cost, which comprise: The lease payments are discounted using the Authority’s incremental borrowing rate or

the implicit rate in the lease contract.

• the amount of the initial measurement of the lease liability

• any lease payments made at or before commencement date, less any lease The lease term determined by the Authority comprises:

incentives • non-cancellable period of lease contracts;

• any initial direct costs incurred by the lessee • periods covered by an option to extend the lease, if the leasee is reasonably

• an estimate of costs to be incurred by the lessee in dismantling and removing the certain to exercise that option;

underlying assets or restoring the site on which the assets are located. • periods covered by an option to terminate the lease, if the leasee is reasonably

certain to exercise that option.

After the commencement date the right-of-use assets are measured at cost less any

accumulated depreciation and any impairment losses and adjusted for re-measurement After the commencement the Authority measures the lease liability:

of the lease liability. • increasing the carrying amount to reflect the interest on the lease liability

• reducing the carrying amount to reflect lease payments made, and

If the lessor transfers ownership of the underlying asset to the Authority by the end • remeasuring the carrying amount to reflect any reassessment or lease

of the lease term or if the lease agreement of the right-of-use asset reflects that the modifications.

Authority will exercise a purchase option, the Authority depreciates the right-of-use

asset using straight-line method from the transfer date or exercise option date to the 1.8. Taxation

end of the useful life of the underlying asset. The Authority is exempt from Income Tax in terms of section 16(1)(e)(i) of the Income Tax

Act No. 24 of 1981.

The lease liability is initially measured at the present value of the lease payments that are

not paid at that date. These include: 1.9. Impairment of assets

• fixed payments, less any lease incentives receivable; The Authority assesses at each end of reporting period whether there is any indication

• variable lease payments that depend on an index or rate, initially measured using that an asset may be impaired. If any such indication exist, the Authority estimates the

the index or rate as at the commencement date; recoverable amount of the asset.

• amounts expected to be payable by the leasee under residual value

guarantees;

Business and Intellectual Property Authority 120 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

1.9. Impairment of assets (Continued)

Irrespective of whether there is any indication of impairment, the Authority also: The expected cost of compensated absences is recognised as an expense as the

• Tests intangible assets with an indefinite useful life or intangible assets not yet employees render services that increase their entitlement or, in the case of non-

available for use for impairment annually by comparing its carrying amount with accumulating absences, when the absence occurs.

its recoverable amount. This impairment test is performed during the annual

period and the same time every period. The expected cost of bonus payments is recognised as an expense when there is a legal

or constructive obligation to make such payments as a result of past performance.

If the recoverable amount of an asset is less than its carrying amount, the carrying amount

of the asset is reduced to its recoverable amount. The reduction is an impairment loss. 1.11. Provisions and contingencies

Provisions are recognised when:

An impairment loss of assets carried at cost less any accumulated depreciation or • The Authority has a present obligation as a result of a past event

amortisation is recognised immediately in surplus or deficit. Any impairment loss • It is probable that an outflow of resources embodying economic benefits will be

of a revalued asset is treated as a revaluation decrease. required to settle the obligation; and

• A reliable estimate can be made of the obligation

The Authority assesses at each reporting date whether there is any indication that an

impairment loss recognised in prior periods for assets other than goodwill may no longer The amount of a provision is the present value of the expenditure expected to be

exist or may have decreased. If any such indication exists, the recoverable amounts of required to settle the obligation.

those assets are estimated.

1.11.1. Provision for salary bonus

The increased carrying amount of an asset other than goodwill to a reversal of an Management provide for bonus compensation beyond annual remuneration to

impairment loss does not exceed the carrying amount that would have been determined employees as an incentive or reward for achieving certain predetermined individual

had no impairment loss been recognised for the asset in prior periods. targets of the Authority.

A reversal of an impairment loss of assets carried at cost less accumulated depreciation 1.11.2. Provision for leave pay

or amortisation other than goodwill is recognised immediately in surplus or deficit. Any Management provide for leave days payout, which are compensated absences or

reversal of an impairment loss of a revalued asset is treated as a revaluation increase. accumulating absences that are carried forward to the next period. Compensated

absences that are earned in the current period and can be used in the following financial

1.10. Employee benefits period are accounted for as a liability in the period in which they are earned.

1.10.1. Short-term employee benefits

The cost of short-term employee benefits (those payable within 12 months after the However, compensated absences such as maternity, paternity, sick leave and court leave

service is rendered, such as leave pay and sick leave, bonuses and non-monetary benefits would not be included as part of the Authority’s provision for leave.

such as medical care), are recognised in the period in which the service is rendered and

are not discounted.

Business and Intellectual Property Authority 121 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

1.12. Government grants Registrations of Trademarks, Patents and Industrial Designs

Grants from the government are recognised at fair value where there is a reasonable

assurance that the grant will be received and the Authority will comply with all attached Revenue transactions that arise as a result of trademark and designs annual fee per

conditions. class and patent maintenance fees and are charged as per the Regulation published

in the Government Gazette and recognised over time when the trademark, patent and

1.12.1. Deferral and presentation of government grants design holder file a return to the Registrar of Patents, Trademarks and Designs. These

Government grants relating to costs are deferred and recognised in surplus or deficit fees are raised in terms of the Regulations of the Industrial Property Act.

over the period necessary to match them with the costs that they are intended to

compensate. 1.13.2. Revenue from non-exchange transactions

The following are revenues from non-exchange transactions:

Government grants relating to the purchase of property, plant and equipment are • Annual duties

included in non-current liabilities as deferred income and they are credited to surplus or • Fines, penalties

deficit on a straight-line basis over the expected lives of the related assets. • Transfers - including grants, fines. Gifts, donations and service-in-kind

• Anniversary fines

A Government grant may take the form of a transfer of a non-monetary asset, such as

land or other resources, for the use of the Authority. The land received is recognised Revenue from non-exchange shall be measured at the amount of the increase in net

as property, plant and equipment and measured at fair value, and the equivalent is assets recognised by the entity. The measurement shall be based initially at fair value as

recognised as income in the year it was received, as land is not depreciated. at the date of acquisition. When the Authority recognises an asset, it shall also recognise

revenue, except to the extent that a liability is also recognised in respect of the same

1.13. Revenue inflow. The asset is recognised when it is probable that future economic benefit or

Revenue is recognised to the extent that the Authority has rendered services provided service potential associated with the asset will flow to the entity and that the fair value of

the amount of revenue can be measured reliably and it is probable that economic the asset can be measured reliably.

benefits associated with the transaction will flow to the Authority. Revenue is measured

at fair value of the consideration received or receivable, excluding trade discounts and 1.13.3. Investment income

rebates. Investment income comprise of interest income received.

1.13.1. Revenue from contracts with customers Interest income is accrued with reference to the principal amount outstanding, using the

effective interest method.

Revenue from registrations, applications and amendments

1.14. Borrowing costs

Revenue from registrations and applications comprise of business and intellectual Borrowing costs that are directly attributable to the acquisition, construction or

property registration fees charged upon registration. The business and intellectual production of a qualifying asset are capitalised as part of the cost of that asset until such

property fees are charged as per the Regulation published in the Government Gazette, time as the asset is ready for its intended use. The amount of borrowing costs eligible for

and the fees are recognized at the point when the Authority has a present right to receive capitalisation is determined as follows:

payment of fees for the registration and application of businesses and intellectual

property. Transfer of services is performed at a point in time.

Business and Intellectual Property Authority 122 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

1.14. Borrowing costs (Continued) Non-monetary items that are measured at fair value in a foreign currency are translated

• Actual borrowing costs on funds specifically borrowed for the purpose of obtaining using the exchange rates at the date when the fair value was determined. Translation

a qualifying asset less any temporary investment of those borrowings. differences on assets and liabilities carried at fair value are reported as part of the fair

• Weighted average of the borrowing costs applicable to the entity on funds value gain or loss. For example, translation differences on non-monetary assets and

generally borrowed for the purpose of obtaining a qualifying asset. The borrowing liabilities such as equities held at fair value through surplus or deficit are recognised in

costs capitalised do not exceed the total borrowing costs incurred. surplus or deficit as part of the fair value gain or loss, and translation differences on non-

monetary assets such as equities classified as at fair value through other comprehensive

The capitalisation of borrowing costs commences when: income are recognised in other comprehensive income.

• Expenditures for the asset have occurred;

• Borrowing costs have been incurred, and The amount of foreign exchange differences recognised in profit or loss except for

• Activities that are necessary to prepare the asset for its intended use or sale are those arising on financial instruments measured on fair value through profit or loss in

in progress. accordance with IFRS 9.

Capitalisation is suspended during extended periods in which active development is 1.16. Contribution

interrupted. On 27 August 2017, the BIPA established under section 21 Registration number

21/2011/0482 ceased to exist and was subsequently replaced by BIPA established

Capitalisation ceases when substantially all the activities necessary to prepare the under the BIPA Act, 2016 (Act No. 8 of 2016), promulgated on 16 January 2017. All assets

qualifying asset for its intended use or sale are complete. and liabilities belonging to the BIPA section 21 was transferred to the BIPA established

by the Act.

All other borrowing costs are recognised as an expense in the period in which they are

incurred. The Net capital contribution to the BIPA established by the Act recognised in the books

amounted to N$34,491,766, which is capital injected by the Government of Namibia,

1.15. Foreign Currency Translation therefore this amount is recognised as contribution.

Foreign currency transactions are translated into functional currency using the exchange

rates at the dates of the transactions. Foreign exchange gains and losses resulting from

the settlement of such transactions, and from the translation of monetary assets and

liabilities denominated in foreign currencies at year end exchange rates, are generally

recognised in surplus or deficit. They are deferred in equity if they relate to qualifying

cash flow hedges and qualifying net investment hedges or are attributable to part of the

net investment in a foreign operation.

Foreign exchange gains and losses that relate to borrowings are presented in the

statement of surplus or deficit, within finance costs. All other foreign exchange gains and

losses are presented in the statement of surplus or deficit on a net basis within other

gains/(losses).

Business and Intellectual Property Authority 123 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

2. NEW STANDARDS AND INTERPRETATIONS

2.1. Standards and interpretations effective and adopted in the current year

The annual financial statements were based on the following standards and interpretations and are effective for the current year and relevant to the Authority’s operations:

Standard / Interpretations Effective date: years Expected Impact

beginning on or after

Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2 1-Jan-23 The impact of the standard is not material

Definition of Accounting Estimates – Amendments to IAS 8 1-Jan-23 The impact of the standard is not material

Narrow scope amendments to IAS 1 ‘Presentation of Financial Statements’, Practice statement 1-Jan-23 The impact of the standard is not material

2 and IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’

2.2. Standards and interpretations not yet effective

The Authority has chosen not to early adopt the following standards and interpretations, which have been published and are mandatory for the Authority’s accounting periods

beginning on or after 01 April 2023 or later periods.

Standard / Interpretations Effective date: years Nature and Expected Impact.

beginning on or after

Non-current liabilities with covenants 1-Jan-24 The amendments clarifies that liabilities are classified

– Amendments to IAS 1 as either current or non-current, depending on the

rights that exist at the end of the reporting period.

Lease liability in sale and leaseback – amendments 1-Jan-24 The amendments specify that, in measuring the

to IFRS 16 lease liability subsequent to the sale and leaseback,

the seller-lessee determines ‘lease payments’ and

‘revised lease payments’ in a way that does not result

in the seller-lessee recognising any amount of the

gain or loss that relates to the right of use that it

retains.

Business and Intellectual Property Authority 124 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

3. RISK MANAGEMENT

3.1. Capital risk management

Capital risk is the potential of loss of part or all of an investment. The Authority’s objectives Authority maintains its capital by not providing dividends. BIPA capitalizes surpluses and

when managing capital are to safeguard its ability to continue as a going concern in this has seen an increase in assets. The Authority has no major borrowing covenants.

order to provide financial stability and benefits for the Government of Namibia. The There are no capital requirements set out at the establishment of the Authority.

The following table summaries the capital contribution, reserves and accumulated funds and are outlined as follows:

Capital structure 2023 2022

Contribution (Note 11) 34,491,766 34,491,766

Accumulated funds 39,781,208 45,869,529

Total 74,272,974 80,361,295

3.2. Financial risk management At the end of the reporting period the Authority held other financial assets of

3.2.1. Overview N$37,391,421 (2022: N$31,678,807) and cash and cash equivalents amounting to

The Authority is exposed to the following financial risk from its use of financial N$28,170,040 (2022: N$22,029,706) that are expected to readily generate cash inflows

instruments: for managing liquidity risk.

• Liquidity risk

• Credit risk The Authority’s cash and cash equivalents and other financial assets compared to current

• Market risk (Interest rate and foreign exchange risk) liabilities result in a ratio of 2.94:1. In addition to cash and cash equivalents and other

financial assets, the Authority has funds held in trust with ARIPO and WIPO which form

part of trade and other receivables, amounting to N$7,594,848 (2022: N$4,484,068),

3.2.2. Liquidity risk which can be called in at any given time.

The Authority is exposed to liquidity risk, which is risk of failure to meet obligations as they

fall through. The risk is managed through prudent cash management. The Authority’s The Authority manages its cash flows through detailed annual and revised quarterly

liabilities incurred and expected are aligned to the current cash available and expected cash flow projections to ensure the Authority is afloat.

cash inflows.

Business and Intellectual Property Authority 125 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

3. RISK MANAGEMENT (CONTINUED)

The table below summarises the maturity profile of the entity’s financial liabilities at 31 March 2023 based on contractual undiscounted payments:

At 31 March 2023 Less than 1 Year More than 1 Year

Trade and other payables (Note 13) 17,557,603 -

Lease liabilities (Note 6) 3,211,484 -

Total current liabilities 20,769,088 -

At 31 March 2022 Less than 1 Year More than 1 Year

Total current liabilities 17,248,948 -

3.2.3. Credit risk The determination depends on whether there has been a significant increase in the

Credit risk is the risk of financial loss to the Authority if a customer or counter-party to a credit risk since initial recognition. Management assesses if there has been a significant

financial instrument fails to meet contractual obligation and arises from other financial increase in credit risk, then the loss allowance is calculated based on lifetime expected

assets and trade receivables. credit losses, and if not the loss allowance is based on 12 month expected credit

losses.

The Authority’s credit risk consists mainly of other financial assets, cash and cash

equivalents and trade receivables. The Authority only deposits cash with major banks Financial assets exposed to credit risk at year end were as follows:

with high quality credit standing and limits exposure to any one counter-party.

Financial Instrument 2023 2022

The Authority trade receivables are from WIPO and ARIPO, and are recognised each time Trade and other receivables (Note 7) 8,175,223 4,769,517

the share of the Authority is calculated. The Authority manages the risk by calling the

Less: Loss allowance (Note 7) (8,164) (4,779)

funds immediately when the amounts due to the authority from ARIPO and WIPO are

communicated by them. Net trade and other receivables 8,167,059 4,764,738

Credit loss allowances for expected credit losses are recognised for all trade and other

receivables but exclude staff advances and those measured at fair value through profit Cash and cash equivalents 28,170,040 22,029,706

or loss. The Authority’s management determines whether the credit loss allowance on

trade and receivables should be calculated on a 12 month basis or a lifetime expected The Authority’s exposure to credit risk is influenced mainly by individual characteristics of

credit loss basis. each customer. However management limits its exposure to credit risk from receivables

with ARIPO and WIPO by frequently calling for funds to Namibia. The Authority monitors

its rental deposits with landlords and requests refunds upon termination.

Business and Intellectual Property Authority 126 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

3. RISK MANAGEMENT (CONTINUED) The Authority manages interest rate risk on short-term investments through investment

guidelines for all investments and the Authority invests with major banking institutions

3.2.4. Market risk with high quality credit standing. The interest received on cash and cash equivalents

Market risk is a risk that changes in the market prices - such as interest rate risk and at financial institutions are minimal and therefore interest rate risk is identified as

foreign exchange risk, which will affect the Authority’s income or the value of its holding insignificant. Any interest rate achieved by the Authority is highly favourable, than

of financial instruments. The objective of market risk management is to manage and keeping the funds idle.

control market risk exposures within acceptable parameters while optimising the

return. Financial assets exposed to interest rate risk at 31 March 2023 were as follows:

Financial assets 2023 2022

The Authority has been established as a public enterprise under the BIPA Act, 2016 (Act

No.8 of 2016), mandated to administer the registration of businesses, collect annual Cash and cash equivalents 28,170,040 22,029,706

duties and protection of intellectual property thereof. The Authority is therefore the only Other financial assets 37,391,421 31,678,807

entity mandated to do so.

3.2.4.1. Interest rate risk

Cash flows interest rate risk is the risk that the future cash flows of a financial instrument Sensitivity analysis

will fluctuate because of changes in market interest rates. Fair value interest rate risk

is the risk that the value of a financial instrument will fluctuate because of changes in The following sensitivity analysis has been prepared using a sensitivity rate which is used

market interest rates. when reporting interest rate risk internally to key management personnel and represents

management’s assessment of the reasonably possible change in interest rates.

The Authority is exposed to various risks associated with the effect of fluctuations in the

prevailing levels of market rates of interest on its cash resources and investments. The All other variables remain constant. The sensitivity analysis includes only financial

cash resources are managed to ensure that surplus funds are invested in a manner instruments exposed to interest rate risk which were recognised at the reporting date.

to achieve maximum returns while minimising risks. The Authority places its funds in No changes were made to the methods and assumptions used in the preparation of the

fluctuating interest earning call deposits which are adjusted on a short term basis based sensitivity analysis compared to the previous reporting period.

on changes in the prevailing market related rates.

2023 2023 2022 2022

Increase or decrease in rate by 1% Increase Decrease Increase Decrease

Impact or profit or loss

Cash and Cash Equivalents 281,700 (281,700) 220,297 (220,297)

Other Financial Assets 373,914 (373,914) 316,788 (316,788)

655,614 (655,614) 537,085 (537,085)

Business and Intellectual Property Authority 127 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

3. RISK MANAGEMENT (CONTINUED) At 31 March 2022

Amount

3.2.4.2. Foreign exchange risk Foreign Amount in Local

Financial Instrument in Foreign

Foreign exchange risk refers to the losses that an international financial transaction may Currency Currency (N$)

Currency

incur due to currency fluctuations. The Authority is exposed to foreign exchange risk,

Trade and other receivables:

as the entity has financial assets held in foreign currency which are translated into local

currency in the financial statements. These foreign transactions include accrued income • Accrued income - African Regional

from the international listing on trademarks, patents, industrial designs, utilities and Intellectual Property Organisation US Dollar 125,336 1,815,465

(ARIPO)

copyrights.

• Accrued income - World Intellectual

Swiss Franc 170,577 2,668,603

Exchange risks are managed through preserving of foreign currency earned on said Property Organisation (WIPO)

country and only bring them when exchange rates are favourable. The Authority

does not hedge itself against unfavourable exchange rates, as such it uses floating Sensitivity analysis

exchange rates. Financial assets exposed to foreign exchange risk at year end were as Surplus or deficit is sensitive to the gains or losses on exchange differences on receipts

follows:follows: from international transactions as a result of changes in foreign exchange rates.

At 31 March 2023

Amount Amount in 2023 2023 2022 2022

Foreign

Financial Instrument in Foreign Local Currency Gains or losses on exchange

Currency Gains Gains

Currency (N$) differences, by N$1 movement in Loss (N$) Loss (N$)

(N$) (N$)

Trade and other receivables: rates.

• Accrued income - African Regional Impact or profit or loss

Intellectual Property Organisation US Dollar 189,209 3,284,166 ARIPO -US$ 189,209 (2022:

(ARIPO) 189,209 (189,209) 125,336 (125,336)

US$125,336)

• Accrued income - World Intellectual WIPO -US$ 219,701 (2022: US$

Swiss Franc 219,701 4,310,682 219,701 (219,701) 170,577 (170,577)

Property Organisation (WIPO) 170,577)

408,910 (408,910) 295,913 (295,913)

BIPA maintains floating exchange rates.

Business and Intellectual Property Authority 128 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

3. RISK MANAGEMENT (CONTINUED)

3.2.5. Fair value hierarchy

Judgments and estimates made in determining the fair values of the financial instruments that are recognised at fair value in the financial statements are

provided below as follows:

Recurring fair value measurements as at 31 March 2023 Level 1 Level 2 Level 3 Total

Financial assets

Financial assets at fair value through profit or loss:

• Trade and other receivables (excluding deposits) - - - -

• Other financial assets - 37,391,421 - 37,391,421

• Cash and cash equivalents - - 28,170,040 28,170,040

Total financial assets - 37,391,421 28,170,040 65,561,461

Financial liabilities

• Trade and other payables - - 17,557,603 17,557,603

Total financial liabilities - - 17,557,603 17,557,603

Level 2: These are financial instruments that are not traded on an active market and their valuation is based on maximising the use of observable market

data and rely as little as possible on entity-specific estimates.Level 3 is BIPA’s own data, this is unobservable by market participants.

Recurring fair value measurements as at 31 March 2022 Level 1 Level 2 Level 3 Total

Financial assets

Financial assets at fair value through profit or loss:

• Trade and other receivables (excluding deposits) - - - -

• Other financial assets - 31,678,807 - 31,678,807

• Cash and cash equivalents - - - -

Total financial assets - 31,678,807 - 31,678,807

Financial liabilities

• Trade and other payables - - 14,698,729 14,698,729

Total financial liabilities - - 14,698,729 14,698,729

Business and Intellectual Property Authority 129 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

2023 2022

N$ N$

4. PROPERTY, PLANT AND EQUIPMENT

2023 2022

Accumulated Accumulated Carrying

Cost Carrying value Cost

Depreciation Depreciation value

Land 10,958,850 - 10,958,850 10,775,000 - 10,775,000

Buildings 956,800 (61,875) 894,925 1,125,000 (39,375) 1,085,625

Furniture and fixtures 2,514,447 (1,165,115) 1,349,332 2,491,274 (940,162) 1,551,112

Motor vehicles 2,004,003 (1,204,543) 799,460 1,765,926 (1,547,109) 218,817

Office equipment 621,455 (423,948) 197,507 629,381 (255,964) 373,417

IT equipment 4,023,111 (2,898,944) 1,124,167 3,619,634 (2,305,837) 1,313,797

Other Fixed Assets 8,319,727 (2,076,538) 6,243,189 7,693,898 (1,525,734) 6,168,164

Capital work in progress 12,842,529 - 12,842,529 12,842,529 - 12,842,529

42,240,921 (7,830,963) 34,409,958 40,942,642 (6,614,181) 34,328,461

Reconciliation of property, plant and equipment - 2023

Opening Impairment Transfer in/ Accumulated

Additions Disposal Revaluation Depreciation Total

balance loss out Dep Reversal

surplus

Land * 10,775,000 - - 183,850 - - 10,958,850

Buildings * 1,085,625 - - (168,200) - (22,500) 894,925

Furniture and fixtures 1,551,112 - - 23,173 - (224,953) 1,349,332

Motor vehicles 218,817 837,094 (599,017) 485,240 (142,674) 799,460

Office equipment 373,417 15,246 - (23,173) - (167,984) 197,507

IT equipment 1,313,797 429,968 (26,491) 22,604 (615,711) 1,124,167

Other Fixed Assets 6,168,164 625,829 - - (550,804) 6,243,189

Capital work in progress 12,842,529 - (12,842,529) - - -

34,328,461 1,908,137 (625,508) 183,850 (13,010,729) - 507,844 (1,724,626) 21,567,429

Business and Intellectual Property Authority 130 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

4. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

*Land and Buildings consist of a certain Erf no. 8681 (A portion of Erf 1575), Windhoek, Registered Government title No. T.3063/2020. The property was valued by RMC Property

Services CC on 26 June 2023. Land valued at N$ 10,958,850 and building at N$ 894,925. Land appreciated by N$ 183,850 and Building was impaired by N$ 168,200. Land and

buildings is not pledged as a security for liablities.

Capital work in progress (WIP) was written off from the asset register during the financial 2022/23. The value of the WIP impaired was N$12,842,529. The reasons to write off

the impairment were, the projected cost for the building was N$200 million which BIPA did not have and cannot afford to borrow. Furthermore, the board approved the procure-

ment of a stand-alone building of which most of the properties on the market is close to a quarter of N$ 200 million. The Board approved the impairment on 31st May 2023.

*Assets disposed off at a value of N$ 585,950 had a non cash item value of N$ 340,000.

Reconciliation of property, plant and equipment - 2022

Opening Accumulated

Opening

balance Additions Dep Depreciation Total

balance

adjustment Adjustment

Land * 10,775,000 - - - - 10,775,000

Buildings * 1,108,125 - - - (22,500) 1,085,625

Furniture and fixtures 1,608,236 82,364 112,751 (35,971) (216,267) 1,551,112

Motor vehicles 241,130 - - - (22,313) 218,817

Office equipment 336,672 - 188,042 - (151,296) 373,418

IT equipment 920,306 17,362 809,369 (13,266) (419,973) 1,313,797

Other Fixed Assets 6,555,278 - 143,643 - (530,757) 6,168,164

Capital work in progress 12,842,529 - - - - 12,842,529

34,387,276 99,726 1,253,805 (49,237) (1,363,106) 34,328,462

Business and Intellectual Property Authority 131 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

5. INTANGIBLE ASSETS

2023 2022

Net

Accumulated Net Carrying Accumulated

Cost Carrying

Cost amortisation amount amortisation

amount

Computer Software - Exter-

7,875,720 (4,592,165) 3,283,555 7,875,720 (3,017,021) 4,858,699

nally generated assets *

7,875,720 (4,592,165) 3,283,555 7,875,720 (3,017,021) 4,858,699

Reconciliation of intangible assets - 2023

Opening

Additions Disposals Amortisation Total

balance

Computer Software -

4,858,699 - - (1,575,144) 3,283,555

Externally generated assets

4,858,699 - - (1,575,144) 3,283,555

Reconciliation of intangible assets - 2022

Opening

Additions Disposals Amortisation Total

balance

Computer Software 5,409,072 963,208 - (1,513,581) 4,858,699

5,409,072 963,208 - (1,513,581) 4,858,699

5.1. INTANGIBLE ASSETS (LIST)

5.1.1. Enterprise Resource Planning System under development cost to date of N$2,990,609.63 (2022: N$2,990,609.63)

Business and Intellectual Property Authority 132 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

2023 2022

N$ N$

6. LEASES

6.1. Amounts recognised in the statement of financial position

The statement of financial position shows the followings relating to leases:

6.1.1. Right-of-use assets

Initial Lease FY22 (ended)

Accumulated Carrying

Item Cost

Depreciation Value

Building 3,640,379 (3,640,379) -

3,640,379 (3,640,379) -

Second Lease - 2023

Accumulated Carrying

Item Cost

Depreciation Value

Building 8,400,134 (3,987,886) 4,412,248

8,400,134 (3,987,886) 4,412,248

Third Lease - 2023

Accumulated Carrying

Item Cost

Depreciation Value

Building 503,599 (194,941) 308,657

503,599 (194,941) 308,657

Reconciliation of right-of-use assets - 2023

Opening

Item Additions Depreciation Total

balance

Building 7,233,450 503,599 (3,016,144) 4,720,905

Total 7,233,450 503,599 (3,016,144) 4,720,905

Business and Intellectual Property Authority 133 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

6. LEASES (CONTINUED)

6.1.1. Right-of-use assets - 2022

Accumulated Carrying

Item Cost

Depreciation Value

Building 12,040,513 (4,807,063) 7,233,450

12,040,513 (4,807,063) 7,233,450

Reconciliation of right-of-use assets - 2022

Opening

Item Additions Depreciation Total

balance

Building 2,426,920 8,400,134 (3,593,604) 7,233,450

Total 2,426,920 8,400,134 (3,593,604) 7,233,450

6.1.2. Lease liabilities

Current 3,211,484 2,550,219

Non-Current 2,068,463 4,896,512

5,279,947 7,446,731

There was an addition to the right-of-use assets, whereby the Authority (Lessee) entered into a new lease agreement with the Lessor for a period aligned with the existing lease.

6.2. Amounts recognised in the statement of surplus or deficit

The statement of comprehensive income shows the following amounts relating to leases:

Interest expense (included in finance costs) 649,929 293,234

Depreciation charge-of-right-of-use assets

Buildings 3,016,144 3,593,604

3,666,073 3,593,604

Business and Intellectual Property Authority 134 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

2023 2022

6. LEASES (CONTINUED)

N$ N$

6.3. Total cash outflows for leases

Principal elements of lease payments 3,099,512 2,869,919

6.4. Operating lease - as leasee (expense)

Expense relating to short-term leases (included in cost of goods sold and administrative expenses) 138,000 126,500

Expense relating to variable lease payments not included in lease liabilities (included in administrative

411,584 373,248

expenses)

The Authority leases various equipment and office buildings. All have a fixed term lease periods of three years. The lease terms are negotiated differently and have different

terms of conditions. Extensions and termination are explicitly included.

Right-of-use leases asset are depreciated at the shorter of asset’s useful life and the lease term on a straight line basis. The Authority use the discount factor of 10% which is

Namibia’s prime rate plus credit risk.

6.5. Maturity analysis for lease liabilities

The maturity analysis for lease liabilities is as follows:

within one year 3,568,273 3,320,312

Two to five years 2,169,679 5,737,952

5,737,952 9,058,264

Less finance charges component (458,005) (1,611,533)

5,279,947 7,446,731

Non-current liabilities 2,068,463 5,279,947

Current laibilities 3,211,484 2,550,219

5,279,947 7,830,166

6.6. Significant lease arrangements

The Authority leases a building from PZN for carrying out its mandate. The lease agreement is for a period of three (3) years, starting 1 November 2021, ending 31 October 2024

with an annual escalation of 8%.

Business and Intellectual Property Authority 135 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

7. TRADE AND OTHER RECEIVABLES

Financial Instruments:

Trade receivables 36,482 36,571

Less: Loss allowance (see note 7.(iii)) (8,164) (4,779)

Non-Financial Instruments:

Deposits 204,200 204,404

Staff Advances 339,693 248,878

Accrued income - African Regional Intellectual Property Organisation 3,284,166 1,815,465

Accrued income - World Intellectual Property Organisation 4,310,682 2,668,603

8,167,059 4,969,142

(i) CLASSIFICATION OF TRADE RECEIVABLES

Trade receivables are amounts due from customers for services performed during the course of the business. They are generally due within 30 days and therefore are all classi-

fied as current. Trade receivables are recognized initially at the amount of consideration that is unconditional unless they contain significant financing conditions when they are

recognized at fair value. The Authority holds trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortized

cost using the effective interest method. Details about the Authority’s impairment policies and the calculation of the loss allowance are provided in note 1.5.3.

(ii) FAIR VALUE OF TRADE RECEIVABLES

Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.

(iii) IMPAIRMENT AND RISK EXPOSURE

Information about impairment of trade receivables and the Authority’s exposure to credit risk, foreign exchange risk and interest rate risk can found in note 1.9, 3.2.3, 3.2.4.2,

3.2.4.1.

Exposure to credit risk

Trade receivables inherently expose the Authority to credit risk, being the risk that the Authority will incur financial loss if customers fail to make payments as they fall due.

Business and Intellectual Property Authority 136 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

2023 2022

7. TRADE AND OTHER RECEIVABLES N$ N$

The Authority’s historical credit loss experience does not show significantly different loss patterns for different customer segments. The provision for credit losses is therefore

based on past due status without disaggregating into further risk profiles. The loss allowance provision is determined as follows:

2023 2023 2022 2022

Loss allowance Estimated Loss allowance

Estimated gross

(Lifetime gross carrying (Lifetime

carrying amount

expected credit amount at expected credit

at default

loss) default loss)

Not past due: 0.1% (2022: 0.1%) 7,799,048 (7,799) 4,688,472 (4,688)

Less than 30 days past due: 0.25% (2022:0.25%)

31 - 60 days past due: 1% (2022:1%) - - - -

61 - 90 days past due: 1% (2022:1%) - - - -

91 - 120 days past due: 1% (2022:1%) - - - -

121 days + past due: 1% (2022:0.25%) 36,482 (365) 36,571 (91)

7,835,530 (8,164) 4,725,043 - (4,779)

8. PREPAYMENTS

Prepaid expenses 332,002 191,667

Prepaid expenses represent annual service level agreement on Client Notification System. The service level agreement is for a period of one year, invoiced on a monthly basis.

9. OTHER FINANCIAL ASSETS

Fair value through profit or loss (FVTPL)

• Opening balance 31,678,807 30,418,200

Movements for the year are as follows:

• Money invested 3,800,000 -

• Money withdrawn - -

Business and Intellectual Property Authority 137 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

2023 2022

9. OTHER FINANCIAL ASSETS (CONTINUED) N$ N$

• Dividend received and reinvested 1,912,614 1,260,607

Total movement 5,712,614 1,260,607

Carrying value 37,391,421 31,678,807

Fair value 37,391,421 31,678,807

(i) CREDIT QUALITY OF OTHER FINANCIAL ASSETS

The credit quality of cash at bank and short-term deposits excluding cash on hand that are neither past due nor impaired can be assessed by reference to external credit ratings

(if available) or historical information about counterparty default rates:

CREDIT RATING:

Capricorn Asset Management (Pty) Limited (A1+ Moody’s credit rating) 37,391,421 31,678,807

10. CASH AND CASH EQUIVALENTS

Current assets

Cash in hand 326 4

Cash at bank 2,209,374 1,283,409

Deposits at call 25,960,340 20,746,293

28,170,040 22,029,706

(i) RECONCILIATION TO CASH FLOW STATEMENT

The above figures reconcile to the amount of cash shown in the statement of cash flows at the end of the financial year as follows:

Balances as above 28,170,040 22,029,706

Balances as statement of cash flows 28,170,040 22,029,706

(ii) CREDIT QUALITY OF CASH AT BANK AND SHORT-TERM DEPOSITS EXCLUDING CASH IN HAND

The credit quality of cash at bank and short-term deposits excluding cash on hand that are neither past due nor impaired can be assessed by reference to external credit ratings

(if available) or historical information about counterparty default rates:

CREDIT RATING:

Bank Windhoek Limited (A1+ Moody’s credit rating) 3,146,702 2,746,684

Business and Intellectual Property Authority 138 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements 2023 2022

9. OTHER FINANCIAL ASSETS (CONTINUED) N$ N$

CREDIT RATING:

First National Bank Namibia (ba3 Moody’s credit rating) 1,586,331 931,226

CREDIT RATING:

Nedbank Namibia (Ba2 Moody’s credit rating) 23,436,681 18,351,791

11. CONTRIBUTION 34,491,766 34,491,766

The BIPA established under the BIPA Act, 2016 (Act No. 8 of 2016) took over all the assets and liabilities of the BIPA established under section 21 of the Companies Act.

RECONCILIATION

Opening balance 34,491,766 34,491,766

34,491,766 34,491,766

12. DEFERRED INCOME

Opening balance 2,783,177 3,015,108

Donation 5,591,045 -

Depreciation charge for the year (231,931) (231,931)

Expenses recognised (1,620,404) -

6,521,887 2,783,177

Deferred income represents IT server equipment received as a donation from GIZ to the value of N$3,478,970.00 on 31 March 2018, Donation from Bank of Namibia of N$

5,591,044.61 received in December 2023. Income recognition is based on the depreciation charge for the period until such asset is fully depreciated or expenses incurred for

the specific year in line with the donation requirements.

Deferred income is disclosed as follows:

Non-Current 2,319,315 2,551,246

Current 4,202,572 231,931

6,521,887 2,783,177

Bank of Namibia funding comes to an end in 2023.

Business and Intellectual Property Authority 139 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

2023 2022

N$ N$

13. TRADE AND OTHER PAYABLES

Financial instruments:

Trade creditors 2,697,205 2,104,170

Association for Entrepreneurial

9,873

Development

Sundry creditors 2,925 2,925

Accrued Liability- Travelling 114,873 -

Provision for salary bonus* 6,631,668 5,000,000

Provision for leave pay* 8,110,932 7,581,761

17,557,603 14,698,729

The nature of the provisions outlined above is described in note 1.11. Cash outflows for salary bonus are expected subsequent to year-end whereas cash outflows for

accrual for leave pay is expected when the employee resigns.

Business and Intellectual Property Authority 140 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements 2023 2022

N$ N$

14. REVENUE FROM CONTRACTS WITH CUSTOMERS

14.1 Disaggregation of revenue from contract with customers

Timing of Revenue Revenue

revenue from external from external

Timing of revenue recognition - At point in time

recognition customers customers

Over time - 2023 - 2022

Income from Registrations of

Companies, Close Corporation and - 4,069,310 4,069,310 4,119,769

Defensive names

Income from Amendments of Com-

1,252,385 1,252,385 1,008,098

panies and Close Corporation

Registration of Trademarks, Patents

3,198,659 3,198,659 3,268,409

and Copyrights

Other income - file request and

286,236 286,236 320,504

copies

Total - 8,806,590 8,806,590 8,716,780

14.2. Disaggregation of revenue from non-exchange transactions

Revenue from Revenue from

non-exchange non-exchange

transactions transactions

2023 - 2022

Income from Annual Duties and

83,026,585 75,640,029

Returns

Total 83,026,585 75,640,029

14.3. Total revenue 91,833,175 84,356,809

Business and Intellectual Property Authority 141 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements 2023 2022

N$ N$

15. OTHER INCOME

Share of fees - African Regional Intellectual Property Organisation (ARIPO) 5,306,637 4,361,290

Sundry Income * 251,286 70,694

Share of fees - World Intellectual Property Organisation (WIPO) 4,015,217 2,772,917

Government Grants - Ministry of Industrialization and Trade (“MIT”) 675,000 -

Profit on sale of property, plant and equipment 468,222 7,955

Grant received (Cash) - Deutsche Gesellschaft fur Internationale Zusammenarbeit - 358,150

Donation received (Deferred income) - Deutsche Gesellschaft fur Internationale Zusammenarbeit 231,931 231,931

Donation received - Bank of Namibia 1,620,404 -

12,568,698 7,802,938

Included in the sundry income is an amount of N$ 182,155 received from GIZ as a refund.

2023 2022

N$ N$

16. OPERATING SURPLUS

Operating Surplus / (Deficit) for the year is stated after accounting for

the following:

Operating lease charges

Premises

• Contractual amounts - Head office (Short-term lease) 138,000 126,500

Equipment

• Contractual amounts (Low value lease) 411,584 373,248

Depreciation on property, plant and equipment (note 4,5 & 21) 6,315,914 6,470,291

Employee costs 71,251,853 63,486,637

Business and Intellectual Property Authority 142 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

2023 2022

N$ N$

17. EMPLOYEE COSTS

Basic Salaries 49,835,084 44,654,605

Pay As You Earn (PAYE) 11,844,341 10,099,633

Medical Aid 2,310,687 2,081,933

Namibia Public Workers Union (NAPWU) 161,903 152,781

Defined Pension Fund 6,840,707 6,187,533

Social Security Contribution 259,131 310,152

71,251,853 63,486,637

18. TAXATION

The Authority is exempt from income tax in terms of section 16(1)(e)(i) of the Income Tax Act of Namibia, as amended.

19. INTEREST RECEIVED AND COSTS

Interest income

Bank 838,196 504,990

Interest on short term Investments 1,912,614 1,260,607

2,750,810 1,765,597

Interest received on investment is re-invested, hence it will not appear on cash and cash equivalents, but will only appear under note 9.

Interest expenses

Finance charges for lease liabilities (649,929) (293,234)

Net finance income 2,100,881 1,472,363

20. AUDITOR’S REMUNERATION

Auditor’s fees 530,809 363,113

Business and Intellectual Property Authority 143 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

2023 2022

N$ N$

21. CASH USED IN OPERATIONS

Surplus/Deficit for the year (6,333,473) 5,560,016

Adjustments for:

Depreciation and amortisation 6,823,835 6,470,291

Loss (gain) on foreign exchange (909,223) 338,091

Profit on sale of non-current assets (468,222) (7,955)

Loss on Impairment on Building 168,200 -

Finance charges for lease liabilities 649,929 293,234

Interest received (838,196) (1,765,597)

Interest received- Investment (1,912,614) -

Provision for expected credit losses 8,164 4,779

Non-cash investing and financing activities

• Adjustment to opening balance 61,302 95,016

• Deferred income release to income statement (1,852,335) (231,931)

• Architectural Work in Progress Write off 12,842,530 -

• Other non-cash items (6,498) (40,136)

Changes in working capital:

Decrease / (Increase) in trade and other receivables (3,201,302) 442,065

Decrease / (Increase) in prepayments (140,335) (191,667)

(Decrease) / Increase in trade and other payables 2,858,874 (2,661,718)

7,750,636 8,304,487

Business and Intellectual Property Authority 144 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

2023 2022

N$ N$

22. RELATED PARTIES

22.1. RELATIONSHIP

Related party relationship exists between the Authority and:

Entity / Organisation Relationship

Board members and Key Management

Ministry of Public Enterprises State Enterprise Governance /

Government

Ministry of Industrialization and Trade (“MIT”) Line Ministry / Government

Ministry of Finance Treasury / Government

African Regional Intellectual Property Organisation (ARIPO) Member State

World Intellectual Property Organisation (WIPO) Member State

Corporate Registers Forum (CRF) Member State

22.2. TRANSACTIONS

Related party transactions:

22.2.1. Key Management

• Short-term employee benefits 7,680,911 5,837,296

Key management comprises of the Chief Executive Officer and five (5) Executives. The significant difference from prior year was due to an increase in remuneration as well as

recruitments of executive within the period.

Business and Intellectual Property Authority 145 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

2023 2022

N$ N$

22.2.2. Other Income

• Share of fees - African Regional Intellectual Property Organisation (ARIPO) 5,306,637 4,361,290

• Share of fees - World Intellectual Property Organisation (WIPO) 4,015,217 2,772,917

22.2.3. Government Grants

• Ministry of Industrialization and Trade (“MIT”) - Grant received 675,000 -

22.2.4. Other income

• Donation received - Bank of Namibia 1,620,404 -

22.2.5. Operating expenses

• ARIPO Specific Membership Contribution 810,130 512,385

• WIPO Membership Contribution 52,357 49,597

• CRF Membership Contribution 6,967 3,319

• State-Owned Enterprise CEO Forum Membership Contribution 20,000 20,000

889,454 585,301

22.3. BALANCES

Related party balances:

22.3.1. Trade and other receivables

• African Regional Intellectual Property Organisation (ARIPO) 3,284,166 1,813,650

• World Intellectual Property Organisation (WIPO) 4,310,682 2,665,934

Business and Intellectual Property Authority 146 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

2023 2022

N$ N$

22.4 BOARD MEMBERS EMOLUMENTS

Non-Executive Directors emoluments consists of:

• Sitting and retainer allowances 818,287 580,179

• Travelling expenses (Daily Subsist-

60,804 361,045

ence & Travel Allowance)

879,091 941,224

23. EXPENSE BY NATURE

• Bar-coding retrieval file 827,347 737,963

• Consulting fees 2,967,897 1,340,353

• Depreciation and amortization 6,315,914 6,470,291

• Salaries and wages 71,251,853 63,486,637

• Silnam Support Services 2,208,000 2,024,000

• Telephone & fax 1,488,859 1,319,552

• Advertising 1,134,446 789,855

• Computer expenses 2,292,933 1,444,376

• Printing & Stationery 850,691 807,241

• Training/Capacity Building 575,541 958,249

• Travelling costs 2,838,746 1,630,608

• NTA - VET Levy 686,562 622,780

• Directors fees 818,287 580,179

• Legal expenses 359,967 530,135

• Electricity & Water 660,661 523,660

• Security 547,296 556,251

• Bank charges 709,780 516,492

• Write off- Architectural work in progress 12,842,530 4,026,704

• Other operating expenses * 5,018,068 4,026,704

114,395,378 92,392,031

Other operating expenses not separately disclosed above consists of all expenses that allows the Authority to continue with operations such as audit fees, printing and

stationaries etc.

Business and Intellectual Property Authority 147 ANNUAL REPORT 2022/2023

Notes to the Annual Financial Statements

2023 2022

N$ N$

24. COMMITMENTS

24.1 Capital commitments

Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows;

2023 2022

Property, plant and equipment 1,330,552 -

Amounts contracted but not provided for in the financial statements amounted to N$ 1,330,552 (2022 N$ 0.00). This related to the procurement of two Toyota Quantum from sup-

plier (Performance Development Centre cc).

Amounts committed but not contracted

New Business Registration System 20,000,000 -

Document Digitization 7,000,000 -

Motor Vehicles 6,598,524 -

33,598,524 -

25. Refund of payroll cost 182,155 -

This amount pertains to a refund received from GIZ for payroll cost

Business and Intellectual Property Authority 148 ANNUAL REPORT 2022/2023

Detailed Statement of Surplus or Deficit and Other Comprehensive Income

2023 2022

N$ N$

Revenue

Income from Registrations of Companies, Close Corporation and Defensive names 4,069,310 4,119,769

Income from Amendments of Companies and Close Corporation 1,252,385 1,008,098

Income from Annual Duties and Returns 83,026,585 75,640,029

Registration of Trademarks, Patents and Copyrights 3,198,659 3,268,409

Other income - file request and copies 286,236 320,504

91,833,175 84,356,809

Other income

Share of fees - Africa Regional Intellectual Property Organisation (ARIPO) 5,306,637 4,361,290

Sundry income 251,286 70,694

Share of fees - World Intellectual Property Organisation (WIPO) 4,015,217 2,772,917

Government Grants - Ministry of

675,000 -

Industrialization and Trade (“MIT”)

Grant received (Cash) - Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) - 358,150

Interest received 2,750,810 1,765,597

Profit on sale of property, plant and equipment 468,222 7,955

Donation received (Deferred income) - Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) 231,931 231,931

Donation received - Bank of Namibia 1,620,404 -

Exchange (Gain/Loss) Interest Payable 909,223 -

16,228,731 9,568,534

Expenses (Refer to page 150 & 151) (114,395,378) (88,365,327)

Surplus for the year (6,333,473) 5,560,016

Business and Intellectual Property Authority 149 ANNUAL REPORT 2022/2023

Detailed Statement of Surplus or Deficit and Other Comprehensive Income (Continued)

Note(s) 2023 2022

N$ N$

Operating expenses

ARIPO Specific contribution 810,130 512,385

Advertising 1,134,446 789,855

Auditors remuneration 19 530,809 363,113

Bank charges 709,780 516,492

Bar-coding retrieval file 827,347 737,963

Books, Journals and Manuals 5,152 7,218

Cleaning 92,512 88,011

Computer expenses 2,292,933

Consulting fees 2,967,897 1,340,353

Courier & Postage 184,849 258,045

Corporate Gifts - 36,106

Corporate Registers forum 6,967 -

Covid - 19 expenses 100,306 154,185

Depreciation and amortisation 4,5 & 21 6,315,914 6,470,291

Directors fees 818,287 580,179

Electricity & Water 660,661 523,660

Employee costs 16 71,251,853 63,486,637

Finance costs 649,929 293,234

Loose tools and equipment - 5,572

Loss allowance 8,164 4,779

Loss on Impairment on Building 168,200 -

Insurance 241,650 70,653

Lease of machinery 411,584 373,248

Business and Intellectual Property Authority 150 ANNUAL REPORT 2022/2023

Detailed Statement of Surplus or Deficit and Other Comprehensive Income (Continued)

Note(s) 2023 2022

N$ N$

Legal expenses 359,967 530,135

Loss on exchange difference - 338,091

Motor vehicle expenses 146,291 139,367

Membership fees 44,330 45,170

NTA - VET Levy 686,562 622,780

Printing & Stationery 850,691 807,241

Promotions 74,208 223,681

Rent Paid 138,000 126,500

Refreshments 181,596 92,179

Repairs & Maintenance 215,537 509,450

Retreats, Conferences and Team Building 664,132 129,492

Safety Equipment 707 1,770

Security 547,296 556,251

Silnam Support Services 2,208,000 2,024,000

Stakeholder Engagement 102,346 35,979

Telephone & fax 1,488,859 1,319,552

Training/Capacity Building 575,541 958,249

Travelling costs 2,838,746 1,630,608

WIPO Contribution 52,357

Wellness event 128,657 97,418

World IP Day 59,655 71,462

Write off- Architectural work in progress 12,842,530

114,395,378 88,365,327

Business and Intellectual Property Authority 151 ANNUAL REPORT 2022/2023

NOTES

Business and Intellectual Property Authority 152 ANNUAL REPORT 2022/2023

Business and Intellectual Property Authority 153 ANNUAL REPORT 2022/2023

HEAD OFFICE KATUTURA OFFICE BIPA REGIONAL OFFICE – ERONGO

PZN Building, 3 Ruhr Street Erf No: 2780, Shire street Sam Nujoma Avenue

Northern Industrial Area Wanaheda Erf No: 3147

Windhoek, Namibia Extension 2 Walvis Bay

P O Box 185, Windhoek Tel: 061 299 4452 Tel: 064 220170

Tel: 061 299 4400

Business and Intellectual Property Authority 154 ANNUAL REPORT 2022/2023